Nordic data center operator Bulk Infrastructure has signed a long-term hydropower Power Purchase Agreement (PPA) with Å Energi in Åseral, Norway.

According to the companies, the PPA will support the construction of the Øygard hydropower plant, which is expected to break ground sometime later this year, with operations expected to begin in 2029. The plant is expected to generate 112GWh of power every year.

The PPA will last 10 years and see Å Energi supply Bulk with 80GWh of power annually to support operations at its N01 data center campus in Vennesla. The PPA will be facilitated through guarantees of origin, which the companies claim will certify that an equivalent amount of energy is produced from the Øygard hydropower plant.

“We are facing significant growth in demand for renewable energy. Close collaboration between power producers and industry is therefore essential. The agreement with Bulk increases predictability and strengthens the profitability of a major and important project such as the Øygard hydropower plant,” said Steffen Syvertsen, CEO of Å Energi.

“This is an important strategic agreement for us. Bulk is a long-term industrial company committed to contributing to the development of the Norwegian energy system. Through this agreement, we take responsibility for securing more of the power required for our operations and for the region,” added Jon Gravråk, CEO of Bulk Infrastructure.

Bulks N01 campus sits on a 300-hectare site located next to the largest transformer station in Europe. It has three subsea cables terminating at the campus, as well as four terrestrial routes.

Construction on N01 first began back in 2014. Bulk previously launched a 12MW data center facility at the campus in 2023 and broke ground on a 42MW expansion at the campus in January 2024. Bulk has 400MW of power secured at the site, with expansion possible up to 1GW.

In November of last year, the company secured a €410 million ($472.1m) senior secured loan to support the continued development of the campus.

The site was recently selected by CoreWeave to host an Nvidia GB200 NVL72 cluster deployment.

The company also operates a site in Oslo and one in Esbjerg, Denmark.

Å Energi was formed in 2022 following the merger of Agder Energi and Glitre Energi, creating one of Norway’s biggest integrated energy companies. It operates more than 70 wholly and partly owned hydroelectric plants, with an installed capacity of around 2.4GW.