Polar DC to Build 40MW Data Center Adjacent to Its Flagship Facility in Norway

Nordic data center developer Polar DC has announced plans to construct a new 40MW data center adjacent to its flagship facility in southeastern Norway, signaling continued expansion in the region's thriving digital infrastructure market.

The new facility, designated DRA02, will be built next to the existing 12MW DRA01 site, which occupies a 60,000 square meter plot in the municipality of Drangedal. According to the company, the data center will be powered entirely by hydroelectric energy, aligning with Norway's abundant renewable energy resources and the industry's growing emphasis on sustainable operations.

Polar DC did not disclose a specific construction timeline for the project. However, the development comes on the heels of a major financial move in early June, when the company raised an €800 million ($932.2 million) senior secured bond in the Nordic bond market. The company stated that the proceeds would be used to refinance existing debt on the DRA01 facility and to complete construction of two additional facilities — one of which is likely DRA02 — during 2026 and 2027.

In addition to the Drangedal expansion, Polar DC is also advancing plans for a separate 40MW data center, named HER01, in Heroya, a peninsula in Telemark County on Norway's southeast coast. These projects underscore the company's strategy to scale capacity in a region that has become a prominent hub for data center development.

Norway's data center market is concentrated along its southern coastline, with the largest cluster located in and around the capital, Oslo. The country's access to low-cost, renewable hydroelectric power makes it an attractive destination for energy-intensive data center operations, particularly as demand for AI and cloud computing infrastructure continues to surge across Europe.