AI data center operator Terakraft and AI chip company Neurophos are teaming up for AI infrastructure at the former’s data center in Norway.

The two aim to develop “sustainable” AI infrastructure under the agreement.

Terakraft’s data center in Norway is powered by hydropower and cooled by natural lake water. According to the company, it operates with a PUE below 1.1.

Meanwhile, Neurophos says that its chips are 100x more energy efficient than “leading GPUs” for AI workloads. The company develops optical processing units that rely on photonics.

Neurophos says of its chips that, by miniaturizing its optical modulators by a factor 10,000x, it can “deliver the compute power of 100 GPUs while consuming the equivalent of one percent of the energy, validated by end-to-end simulation results.”

Once deployed in the Terakraft data center, the two companies will host a pilot as part of an early access program in 2027 for Neurophos’ AI inference platform.

“By hosting Neurophos’ ultra-efficient optical chips in our green data center for select enterprise clients, we not only reduce our carbon footprint but also raise the bar for energy-efficient AI infrastructure. Our mission has always been to power the future responsibly, and this collaboration brings that vision to life,” said Giorgio Sbriglia, chairman of the board of Terakraft.

“Terakraft’s commitment to renewable energy and innovative technologies aligns perfectly with our mission to democratize high-performance AI. By deploying our 100x more efficient inference chips in Terakraft’s green data center, we’re proving that AI’s exponential growth can be achieved sustainably, together,” added Patrick Bowen, CEO and founder of Neurophos.

Terakraft’s website states that the data center has 10MW of IT capacity available to lease, and is capable of supporting high-density racks between 50 and 140kW with rear-door cooling and direct-to-chip cooling options.

The facility was previously part of the Sauda I hydropower plant, which was decommissioned in 2008. Terakraft acquired the building in 2021, transforming it into a data center.

Earlier this month, Vesper Infrastructure acquired Terakraft.