🇮🇸 GIGA-42 signs Memorandum of Understanding with Norðurþing Municipality for AI-optimised hyperscale data center at Bakki, Iceland

The MoU establishes a non-binding framework for cooperation on site allocation, zoning, infrastructure development, and permitting, with the objective of delivering a phased, modular data centre facility beginning with a target 50 MW first phase and building up to be one of Iceland’s first hyperscale data centres. The project would leverage Iceland’s copious resources of renewable geothermal power, cold-climate operational efficiency, and district heating networks to create one of the most advanced and sustainable AI-focused data centres in Europe.

Potential key features of the project include:

• Sustainable design: Integration of geothermal energy and heat recycling to align with Iceland’s national climate and energy strategy.
• Economic impact: Creation of over 100 construction jobs and 50–80 permanent operational roles, alongside local training programmes in collaboration with educational institutions.
• Community benefits: District heating reuse, vocational training, and investigations in to co-locating new and existing local industries such as aquaculture and greenhouses.
• Infrastructure integration: Close proximity to Landsnet’s 220 kV transmission line and the Bakki electricity substation, and fibre connectivity.

Both Parties will now work through feasibility and due diligence, with a target Final Investment Decision (FID) in 2026 and firstphase operations expected in 2027.