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Home AI & Cloud Computing

atNorth’s Iceland data centre epitomises circular economy

AiNEWS2025 by AiNEWS2025
2025-12-13
in AI & Cloud Computing
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Iceland’s atNorth has won a Data Center Dynamics award for Environmental impact for its work in reducing the environmental impact of data centre operations.

The company’s expansion of its ICE03 data centre in Akureyri, Iceland, won for its design, the judges noting the social and economic impact and of the facility and its role in promoting long-term sustainable growth.

ICE03 uses the renewable energy in plentiful supply in the region, and takes advantage of the cool climate. Its energy-efficient Direct Liquid Cooling and the sustainable materials used in its construction helped secure the award. The site uses laminated wood Glulam instead of steel beams, and is insulated with local rockwool.

All atNorth’s new data centres have heat reuse equipment. For ICE03, it sends waste heat to the local municipality of Akureyri, where a community greenhouse operates that teaches local school groups about ecological cultivation and sustainable food production. The partnership lowers the carbon footprint of the data centre and helps the growing of fresh vegetables.

atNorth’s clients benefit from the decarbonisation of their IT workloads, plus they will be contributing to the region’s circular economy. With a Power Usage Effectiveness (PUE) of less than 1.2, compared to a global average of 1.56, the site is able to run high performance workloads in an environmentally responsible way.

For leaders planning cloud, hybrid, and AI road-maps, choosing environmentally-friendly data centre providers is a moral preference and a practical way to reduce risk and improve outcomes.

It lowers the friction of ESG reporting and end-user scrutiny, as cloud provision and colocation forms part of Scope 3. Evidencing low-carbon power sources and associated metrics (energy efficiency, water intensity, emissions) answers investor and procurement questions. data from suppliers can be used, reducing the times teams spend ‘back-filling’ estimates.

The ICE03 data centre in Akureyri joins a new POP (point of presence) for the area, established by telecom business Farice, which operates three submarine cables connecting Iceland to mainland Europe.

The fast connectivity means that Iceland’s data centres appeal to a wider market than in previous decades, when higher latency metrics meant the country’s DCs were not suitable for fast-response compute. The combination of fibre connectivity to Europe, impeccable environmental standards and abundant, clean energy (passed onto users as lower costs) mean that an increasing number of businesses are looking at Iceland and the Nordics as significant parts of their cloud portfolio.

ICE03 operates with a PUE (power usage effectiveness) of less than 1.2, where the global average is 1.56. For organisations wishing to differentiate themselves from competitors, such environmentally-positive credentials are highly valuable. Large-scale and demanding workloads such as AI training and testing can be run at lower cost, and without the environmental impact associated with centres burning fossil fuels.

The concept of circular economies is gradually gaining traction too; organisations are learning to operate in mutually-beneficial ways, providing advantages to operators, local people and businesses. During the initial construction of ICE03, nearly all the workforce were locals, and atNorth says it is committed to hiring locally, where possible, as the facility goes into operation.

The local mayor, Ásthildur Sturludóttir, estimates atNorth’s total investment in the town is worth around 109 million EUR, and the company supports local charities and community projects through volunteer work and financial donations. A donation of mechatronics equipment to the Vocational College of Akureyri helps train local people for data centre–related roles. The business also sponsors local sports events and teams, plus helps fund the local search and rescue team.

Eyjólfur Magnús Kristinsson, CEO atNorth, says: “Data centre operators must take a holistic approach to become long-term, valued partners of thriving communities.”

(Image source:”From Reykjavik, Iceland” by Helgi Halldórsson/Freddi is licensed under CC BY-SA 2.0.)

 

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Tags: circular economycoolingData Centresiceland
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