A Norwegian pulp and paper mill firm is partnering with local data center firm Green Mountain on a potential development project.

Norske Skog Saugbrugs last week announced that it had entered into a non-binding letter of intent (LOI) with Green Mountain to jointly explore the possibility of establishing a data center in Halden, where the paper mill firm is based.

Halden is a town and a municipality in Østfold County, some 115km south of Oslo and close to the country’s border with Sweden.

The companies said the industrial property of Halden-based Norske Skog has been identified as a suitable location for the establishment of a data center.

Earlier this year, the paper company initiated a regulatory process to allow data center operations on the industrial site. It and Green Mountain will continue to work with the local municipality and stakeholders to get the project through permitting.

Details around the scope of any planned data center developments weren’t shared.

“This collaboration provides an exciting opportunity for long-term value creation and activity in Halden. In parallel, we continue to consider a conversion of PM6 for the production of SC magazine paper and kraftliner. We expect to provide an update on these processes during the second quarter of this year,” said Geir Drangsland, CEO of Norske Skog.

Halvor Bjerke, CEO Nordics at Green Mountain, added: “We are excited to explore this opportunity together with Saugbrugs. The site has unique advantages for data center operations, and we look forward to working together further to evaluate this potential.”

Oslo Stock Exchange-listed Norske Skog is a manufacturer of packaging and publication paper with four mills in Europe. Norske Skog Saugbrug, previously Saugbrugsforeningen, was founded in 1859 as a collection of sawmills and became part of Norske Skog in 1989.

Green Mountain was founded back in 2009. It was acquired by Israeli real estate firm Azrieli Group for $850 million in 2021 from Norwegian real estate firm Smedvig.

The company currently operates three sites in Norway, in Oslo, Rjukan, and Rennesøy. It is also developing further campuses in Kalberg, Gismarvik, Undheim, and Hønefoss.

Green Mountain is also active in the UK market, after acquiring a data center in Romford in 2022. It is developing a site in Frankfurt, Germany.

ABG Sundal Collier was the financial advisor to Norske Skog ASA in connection with the process.