Real estate investor BGO has significantly increased its equity stake in Bulk Infrastructure to support the expansion of the Norwegian firm's renewables-powered data center operations, executives from both companies informed Reuters.
BGO, managing assets exceeding $80 billion, injected an additional 350 million euros into Bulk Infra, bringing its total investment to over 640 million euros since 2020, stated BGO Co-Chief Executive John Carrafiell.
The data center site, situated in southern Norway and powered by wind, solar, and hydro sources, aims to become Europe's largest 100% renewable energy-powered facility, with a target capacity of 2 gigawatts by 2026, surpassing its initial goal of 400 megawatts.
Carrafiell emphasized the necessity for tenants to operate in sustainable, renewable data centers due to their significant carbon footprint commitments. The surge in demand for computing power, driven by artificial intelligence applications, underscores the importance of environmentally friendly infrastructure for technology companies such as Microsoft, Meta, and Amazon.
Nordic governments recognize the data center sector as a growth opportunity, particularly with Europe's emphasis on local data storage and the need to reduce carbon emissions.
While demand for data centers remains robust, access to power remains a key constraint, according to Carrafiell. Bulk Infrastructure is constructing its facilities from scratch, incorporating features like liquid cooling for servers to accommodate the energy-intensive requirements of AI-driven businesses.
Bulk Infra's founder and Executive Chairman, Peder Naerboe, highlighted the importance of proximity to renewable energy sources and the scalability of data center facilities to meet clients' evolving needs. The strategic location adjacent to Europe's largest renewable power sub-station is expected to enhance energy efficiency and attract tech clients seeking sustainable infrastructure for their operations.
