Norway Freezes Power Connections for Data Centers; Azrieli Says No Material Impact on Existing Operations

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Norway's grid operator has frozen new power allocations for data centers until August 2027, in order to formulate a policy that will ensure grid stability. The freeze may last until August 2027, according to a notice from the local electricity regulator. The country's transmission system operator has frozen allocations of new connections of server farms to the grid.

The country has become a sought-after destination for technology giants, and TikTok holds a place in the queue for an additional project of 135 megawatts. Azrieli operates in Norway through its subsidiary Green Mountain, which is building a data center with a capacity of 80 megawatts and operates TikTok's data center in the country. Azrieli's shares fell in response to the decision.

Azrieli said there is currently no material impact on existing operations and projects under construction. Green Mountain's upcoming projects are now in doubt, as the local government seeks to determine who will get priority in connecting to the grid. Two analysts believe the concern does not relate to facilities already operating, but to Azrieli's construction plans for the coming years.