Microsoft has announced a landmark agreement valued at approximately $6.2 billion with AI infrastructure firm Nscale and Norwegian industrial investment company Aker. The deal will provide Microsoft with large-scale AI computing capacity hosted in Northern Norway, powered entirely by renewable energy. Spanning five years, the partnership is set to deliver energy-efficient and sustainable infrastructure to serve the growing demand for AI across Europe.

Tackling AI's Climate Impact through Infrastructure Innovation

The agreement comes at a critical moment for Microsoft’s broader environmental ambitions. Since launching its aggressive sustainability roadmap in 2020—including goals to become carbon negative, water positive, and zero waste by 2030, the company has faced new challenges from the explosive rise of AI. With data centre expansion driving emissions upward, Microsoft has shifted toward deeper interventions across its value chain, including carbon removal technologies and supplier decarbonisation initiatives.

Stargate Norway: A New Era of Green AI Infrastructure

The foundation of the deal lies in a joint venture established in July 2025 between Nscale and Aker, called Stargate Norway. This ambitious infrastructure project will be built in the Norwegian town of Narvik, leveraging the region’s abundant hydropower, low electricity demand, and cool climate. Designed to host up to 100,000 NVIDIA GPUs by the end of 2026, the facility aims to deliver secure, sovereign, and energy-efficient compute power to European markets.

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Microsoft’s Strategic Push for Sustainable AI Growth

For Microsoft, this investment represents a strategic step to meet both operational needs and environmental responsibilities. The company has already introduced new internal policies mandating carbon-free electricity usage among key suppliers and assembled a dedicated supplier decarbonisation team to curb emissions in its AI and cloud operations. Partnering with Nscale and Aker strengthens Microsoft’s European presence while reinforcing its commitment to climate-conscious innovation.

Jon Tinter, President of Business Development and Ventures at Microsoft, emphasized the significance of the agreement, stating that it will allow the company to deliver the most advanced AI services in Norway and throughout Europe. He praised the initiative as a bold example of sustainable infrastructure that aligns with Microsoft’s long-term vision for responsible digital growth.

Norway’s Role in Shaping Sovereign and Sustainable Cloud Systems

From the perspective of Norway, the project signifies more than just a data centre. Øyvind Eriksen, President and CEO of Aker, described the deal as a major milestone, not only for the joint venture but also for Norway’s role in the digital future of Europe. He noted that converting clean hydropower into strategic digital capacity demonstrates how the country can lead in developing secure, sovereign AI systems rooted in sustainability. With its existing industrial readiness and commitment to renewable energy, Narvik is poised to become a new launchpad for Europe's sovereign cloud infrastructure.

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A Multi-Phase Deployment with Global Implications

The full rollout of the $6.2 billion contract will begin in stages starting in 2026, with future expansions planned as demand increases. By combining cutting-edge AI technologies with climate-smart infrastructure, the project stands as a global example of how digital and environmental priorities can align. As Microsoft scales its cloud and AI services, this partnership illustrates how sustainability and strategic infrastructure planning can go hand in hand to meet the future of computing.

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