European neocloud Nscale has signed a Power Purchase Agreement (PPA) with Swedish state-owned power company Vattenfall in Norway.

The PPA will support the first phase of Nscale´s data center development in Kvandal, in northern Norway. The exact capacity of the PPA has not been disclosed; however, the companies claim it will cover a significant portion of the electricity needed to power the 230MW data center from 2027 to 2031.

“I am very excited over this new partnership with Nscale. The Nordics offer strong conditions for sustainable data centers. Through long-term electricity agreements, energy-intensive and fast-growing industries gain predictability and security in an increasingly volatile energy market”, said Ronny Brunstad, managing director, Vattenfall Norway.

Vattenfall has not disclosed where the energy will be delivered from. The company operates 6.55GW of installed wind capacity, including 4.44GW of offshore and 2.1GW of onshore wind assets. It is also one of the largest hydropower operators in the world, with more than 11.2GW of installed capacity.

“We are very pleased to have this agreement with Vattenfall secured as we progress towards operations in Kvandal, outside of Narvik. Our success in developing large-scale AI infrastructure in Norway and Europe depends on trusted partners throughout the value chain, and renewable electricity is a vital part of our business model,” said Stian Jenssen, managing director for Nscale Scandinavia.

Nscale’s planned Kvandal data center site is expected to commence operations in 2027, with the PPA covering its power requirements until 2031. The 230MW data center was previously slated to be home to OpenAI for the company’s ‘Stargate’ Norway location. Microsoft has instead signed on to take up that capacity, including 30,000 Nvidia Rubin GPUs.

To fund the development of the campus, Nscale secured $790 million in financing from a consortium of banks. The financing followed a $2 billion Series C funding round by Nscale in March 2026, and a $1.4bn Delayed Draw Term Loan in February.

Nscale is also working on a 250MW data center in Korgen, near Narvik, Norway. Under its joint venture with Aker, the company has also purchased land in multiple locations in Norway, including in Fauske and Skien. Nscale has an existing and operational Norwegian site in Glomfjord.