Recent coverage by Viðskiptablaðið and RÚV highlighted Borealis Data Center’s continued growth in Blönduós, including a new long-term renewable energy agreement with Landsvirkjun and further investment in AI-ready infrastructure. The development supports growing demand for artificial intelligence and high-performance computing, while contributing to economic activity and regional development in Northwest Iceland.

Björn Brynjúlfsson, CEO of Borealis:

"Demand for infrastructure supporting artificial intelligence and high-performance computing is growing rapidly, and we are already seeing how this technology is transforming the world. Iceland has the potential to play a significant role in the global AI supply chain by building the infrastructure and capabilities that underpin the next generation of technological innovation. This agreement with Landsvirkjun enables us to accelerate development in Blönduós, create high-value jobs, and strengthen the diversity and resilience of Iceland’s export sector.“

Expanding Iceland's AI Data Center Capacity

Borealis Data Center has signed a new long-term renewable energy agreement with Landsvirkjun, enabling the next phase of expansion at its Blönduós campus.

The added capacity will support growing demand for AI infrastructure and high-performance computing (HPC) services as organizations across the globe continue to invest in artificial intelligence technologies.

Powered by renewable energy and designed to support next-generation NVIDIA platforms, Borealis offers customers a stable, scalable foundation for AI and high-performance computing workloads. The Blönduós campus combines advanced computing infrastructure with Iceland's renewable energy resources and naturally cool climate, creating an environment optimized for both performance and efficiency.

Whether you are scaling a pilot or deploying a hyperscale environment, Explore Borealis AI & HPC Data Center Services or Contact the Borealis Sales Team to discuss how to build your infrastructure.

Major Investment in Iceland's Digital Infrastructure

The expansion represents a major investment in digital infrastructure and the future of AI computing in Iceland. Borealis is currently investing in a large scale infrastructure development, with the total project value expected to increase significantly as customer computing equipment is deployed.

The project also strengthens Iceland’s position as an attractive destination for AI data centers, supported by renewable energy resources, a cool climate, and reliable infrastructure.

Supporting Regional Growth in Northwest Iceland

Borealis has been part of the Blönduós community for several years, and the continued development of the campus represents the next phase of that investment. As the site grows, so does its contribution to the local economy through construction activity, business partnerships, and long-term infrastructure development.

By investing in Blönduós, Borealis is helping build the infrastructure needed for the next generation of AI while enabling Iceland to turn its renewable energy resources into high-value digital exports. This creates economic value, supports skilled jobs, and strengthens the country's position in the global digital economy.

In the News (Sources):

• Vísir Viðskiptablaðið – Samið um aukin raforkukaup á Blönduósi (23 June 2026)

• RÚV – Gífurlegur fjöldi starfa sem verður til á uppbyggingartímanum (23 June 2026)