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Aker and Microsoft Announce $6.2 Billion AI Deal, Boosting Norway‘s Role in AI Infrastructure
Narvik, Norway – Aker, a Norwegian industrial investment company, has secured a landmark five-year agreement with Microsoft worth $6.2 billion to develop cutting-edge AI infrastructure in the Narvik region of Norway. The announcement, made via a stock exchange release, signals a critically important step forward for Norway’s ambitions in the burgeoning field of artificial intelligence.
The project, a collaboration with Aker’s subsidiary NSCALE, will establish a major data center in the fjord region around Narvik, with services expected to roll out starting in 2026.Aker CEO Øyvind Eriksen hailed the agreement as “an important milestone” for the partnership and for solidifying Norway’s position in the development of nationally-controlled KI (artificial intelligence) infrastructure.
Microsoft confirmed the location, stating the data center will be situated on the same campus as openai in Kvandal, a few kilometers northwest of Narvik, but in a separate building.
Strategic Location & Renewable Energy
Narvik was selected due to its advantageous access to hydropower, resulting in low electricity prices, and its existing industrial base. Microsoft highlighted in a recent article that Narvik will become a key connection point, linking Scandinavia to the rest of Europe through advanced AI and cloud services.
The data center is designed to support both public and private sector development of new AI solutions. Jon Tinter, Director of Business Development and Investments at microsoft, stated the facility will deliver the company’s most advanced AI services to Norway and the wider European market.
Massive Computing Power
Nscale founder and top manager Josh Payne described the project as one of the world’s largest GPU installations, underscoring the escalating demand for computing power to fuel AI development. He believes the investment further cements Narvik’s status as a strategically critically important hub for artificial intelligence.
Skepticism Surrounds Job Creation Estimates
While the project promises significant economic benefits, some skepticism exists regarding projected job numbers. Recent reports suggest estimates of hundreds of jobs may be overly optimistic.
Key Takeaways:
* $6.2 Billion Investment: Aker and Microsoft have signed a five-year agreement worth $6.2 billion.
* Strategic Location: Narvik, Norway, chosen for its hydropower access and existing infrastructure.
* AI hub: the project aims to establish Narvik as a key european hub for AI development and cloud services.
* National Control: The initiative emphasizes Norway’s desire for national control over its AI infrastructure.
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