Scandinavian Data Centers (SDC) has launched a battery energy storage system (BESS) at its first data center site in Eskilstuna, Sweden.

The company last week announced the launch of ScandiDC I; its first ‘ecosystem site’ integrating energy storage, data center, and heat recovery, in Ärnaberget, Eskilstuna – located some 55 miles west of Stockholm.

“We aim to maximize societal benefit per megawatt by building an energy, data, and heat ecosystem,” said Svante Horn, CEO of Scandinavian Data Centers. “Our first site, now launching in Eskilstuna, is an ecosystem where the energy is stored in batteries which stabilize the electrical grid, and residual heat from the data center is reused for the municipality's residents. With the growing energy needs of digitalization, we see our site in Eskilstuna as a model for how AI can be used to heat homes — a tangible example of our active contribution to sustainable development.”

The data center is located in an underground facility launched in 1939 that was used as an aircraft engine factory and testing facility during World War II. SDC reportedly acquired the site several years ago, according to local press.

SDC said for the past fourteen years, a smaller data center has been operated in the facility by one of the largest Nordic IT companies.

The planned expansion will “significantly increase” capacity and will include both traditional air-cooled and liquid-cooled data halls for higher IT loads. The company is reportedly targeting a 2026 completion date and an investment of 2 billion kroner ($186.8m)

Specifications of the BESS and the data center weren’t shared but the company’s website suggests plans for an initial six data halls, with potential for further expansion.

DCD has reached out for more information.

The heat from the data center will be reused in the district heating system operated by Eskilstuna Energi & Miljö.

Adjacent to the data center, SDC’s sister company Scandinavian Energy Centers will operate the battery energy storage system (BESS) that supports the electrical grid locally and acts as backup power for the data center.

The energy storage system was developed in collaboration with Ellevio Energy Solutions, part of the Ellevio Group.

Maria Ramstedt Presits, director of Ellevio Energy Solutions, said: "Scandinavian Energy Centers and Scandinavian Data Centers' view on how efficient and sustainable data centers can be established, the importance of circularly integrated solutions for increased sustainability, and the role of battery facilities in these solutions are fully in line with our vision."

Local IT provider Atea Sweden is one of the companies that will utilize the data center. Linus Wallin, CEO of Atea Sweden, said: “IT and innovative technologies have enormous potential to positively impact carbon footprint, especially related to data centers. In this context, Scandinavian Data Centers has developed a solution that aligns with the societal impact we aim to contribute to."

SDC CEO Horn was previously co-founder of Rockan Data Center, which launched a data center in an underground former military facility near Linköping around 2015. He is also the founder of the investment management firm Two Towns Holding.

Jimmy Jansson, Eskilstuna’s mayor, added: “This initiative strengthens Eskilstuna's position as Sweden's Environmental Best Municipality and a pioneer in sustainable development. Scandinavian Data Centers not only created job opportunities but also with innovative solutions for circularity and climate neutrality.”

Amazon has one data center in development in Eskilstuna that is due live later this year.

During World War II, Bolinder-Munktell, at the request of the Swedish authorities, built Daimler-Benz DB601 airplane engines, with an underground factory at Eskilstuna built to accommodate the factory.