The Norwegian data center market is experiencing a consolidation phase that can no longer be explained solely by cloud growth. Now, multiple factors are applying pressure simultaneously: the rise of artificial intelligence, tightening regulations, and an increasingly practical concern for resilience and data control. In this context, Skygard—the joint venture driven by Telenor, the energy company Hafslund, and the HitecVision fund—has taken a step that redefines its size and ambition in the Oslo metropolitan area: purchasing two operational facilities and simultaneously pushing forward with the development of its new OSL1 center.
In early January, the company announced the acquisition of two data centers in the region, identified as OSL3 and OSL5, previously owned by Orange Business Digital Norway. This move adds immediate capacity and, importantly, a hard-to-build asset from scratch: operational sites, technical expertise, and an active customer base. In an industry where demand is growing faster than capacity can be built—due to energy, permitting, timelines, and supply chain constraints—“buying time” can be as valuable as purchasing square meters.
Skygard frames this operation within a growth strategy: strengthening its presence in Greater Oslo to meet the new wave of demand, with a clear positioning on “controlled in Norway” infrastructure and high standards for security and sustainability. This is not a minor detail. For many companies—especially in sensitive sectors—the question is no longer just “where is the data,” but “under which jurisdiction, with what guarantees of continuity, and with what real incident response capability.”
OSL1: the center aiming to be a showcase of efficiency (and urban heating)
The other pillar of the plan is OSL1, which Skygard envisions as its flagship facility in Oslo. This center is being developed in Hovinbyen/Økern and is designed to handle high-performance loads, including those associated with AI. In its public profile, Skygard describes OSL1 as a site with 20 MW of IT capacity, a target PUE below 1.2 on average, and renewable energy sources, as well as an explicit focus on reusing residual heat (up to 70%) to integrate into urban heating networks. It also emphasizes physical and operational resilience measures aimed at critical environments.
The idea of converting “excess” thermal energy into a resource for the city has become a recurring argument in Northern Europe: if a data center is going to be a 24/7 computing factory, its heat can cease to be waste. By March 2024, when Skygard’s launch and initial construction of the first Oslo center were announced, the company already described it as a project aimed at being “as efficient as possible” and channeling excess heat into the district heating network.
The role of Telenor and the “AI” layer of the project
Telenor is not only a partner but also an anchor client for the project. This introduces a strategic element: the center is not envisioned solely as neutral colocation, but as infrastructure capable of supporting advanced services, including an “AI factory” and intensive workloads. In the March 2024 announcement, the developers linked the project to the need for secure storage “on Norwegian soil” given the geopolitical context and AI advancements, as well as highlighting the goal of building a Norwegian alternative in a highly internationalized industry.
The message is clear: digital sovereignty is not just a political concept, but also an industrial capability. That’s why Skygard aims to combine three elements in its narrative: local ownership, energy efficiency, and AI-ready services. The focus on AI workloads also tends to raise technical requirements (refrigeration, density, electrical design, redundancy), which explains why the company seeks strength through acquisitions rather than relying solely on new builds.
An operation that reflects “muscle” and market rhythm
The data center sector has become a game of scale. Skygard recognizes this: the company is not just buying capacity—they are buying speed. The acquisition of OSL3 and OSL5 adds existing assets while OSL1 is shaping up as a flagship piece of the deployment. According to the company, their ambition extends beyond a single building: the plan announced in 2024 aimed to develop three centers in the Oslo region, with a combined capacity of 40 MW once fully operational.
By January 2026, the announcement of these acquisitions was presented as a way to boost capacity and accelerate Skygard’s market positioning, where “time-to-market” is becoming a competitive advantage in itself.
Frequently Asked Questions
What does it mean for a data center to be “controlled in Norway,” and why does it matter?
It primarily means ownership and management by Norwegian actors, and by extension, a closer fit with jurisdictional, resilience, and security requirements for organizations that prioritize keeping data and operations within the country.
Why is a PUE close to 1.2 important in a data center?
PUE measures how much total energy the facility consumes relative to the energy used by the IT load. The closer to 1.0, the less energy is wasted in cooling and auxiliary systems, which is especially critical for AI workloads.
How is heat from a data center reused for urban heating?
Heat generated by servers and cooling systems can be captured and integrated into district heating networks, reducing thermal waste and providing useful energy to buildings and neighborhoods.
What is the benefit of buying operational centers versus building from scratch?
It provides immediate capacity, proven operations, and usually an active customer base; it also reduces risks related to timelines, permits, and supply chain issues—particularly important in an industry experiencing accelerated demand driven by AI.