May 25, 2026 | Posted by Abdul-Rahman Oladimeji
European neocloud Nscale has signed a Power Purchase Agreement (PPA) with Swedish state-owned energy company Vattenfall in Norway. The agreement will support the first phase of Nscale’s data center development in Kvandal. While the exact capacity has not been disclosed, the companies say it will cover a significant share of the electricity required for the planned 230MW facility between 2027 and 2031.
“I am very excited over this new partnership with Nscale. The Nordics offer strong conditions for sustainable data centers. Through long-term electricity agreements, energy-intensive and fast-growing industries gain predictability and security in an increasingly volatile energy market”, said Ronny Brunstad, managing director, Vattenfall Norway.
Vattenfall has not disclosed the specific generation sources that will supply the agreement. The company operates a total of 6.55GW of installed wind capacity, including 4.44GW of offshore wind and 2.1GW of onshore wind assets. It is also among the world’s largest hydropower operators, with more than 11.2GW of installed capacity.
“We are very pleased to have this agreement with Vattenfall secured as we progress towards operations in Kvandal, outside of Narvik. Our success in developing large-scale AI infrastructure in Norway and Europe depends on trusted partners throughout the value chain, and renewable electricity is a vital part of our business model,” said Stian Jenssen, managing director for Nscale Scandinavia.
Nscale’s planned Kvandal data center site in Kvandal is expected to begin operations in 2027, with the Power Purchase Agreement (PPA) covering its electricity needs through 2031. The 230MW facility was previously expected to host OpenAI as part of the company’s “Stargate” Norway initiative, but Microsoft has since taken up the capacity instead, including deployment of 30,000 NVIDIA Rubin GPUs. To finance the campus development, Nscale secured $790 million in debt financing from a banking consortium, following a $2 billion Series C round in March 2026 and a $1.4 billion delayed draw term loan in February.
