Invest in Iceland Agency is run by the Trade Council of Iceland and the Ministry of Industry.

Data Centers in Iceland - Summary

Cost-competitive
Remote and secure
Technologically advanced
Extensive power resources
Low land and building costs
Good connectivity

Iceland: the coolest location for Data Centers

Our competitive operating environment compares favourably with leading countries in the industrial world. Add to this our green renewable energy, low tax structure, high education levels, abundant land and competitive costs for skilled labour, and you will quickly discover that Iceland is a strong candidate as a location for international data centre operations.

Connected to the world

Extensive power resources

Iceland is the only country in Western Europe that still has extensive, untapped resources of competitively priced hydroelectric power and geothermal energy. It is the only western country that produces all its electricity from emission-free, sustainable natural resources.

Power companies in Iceland operate electricity distribution networks and systems that meet the most stringent international standards for quality services.

Large industrial clients enjoy the best prices available anywhere in Europe or North America. Long-term contracts for 5–10 MW green power are now available, as well as service level agreements for power delivery services.

Competitively priced electricity has already attracted foreign investors to Iceland in fields such as aluminium and ferrosilicon production. Export-oriented power-intensive industries now consume more than half the country’s electricity production.

A secure location

A remote and secure location is without doubt an attractive option for data centres specialising in disaster recovery back-up.

Our mid-Atlantic location makes Iceland an ideal base for companies with business in both North America and Europe.

Iceland has no military and has never actively engaged in war with other nations. The country is a founder member of NATO and has had a defence agreement with the United States since 1951.

Corruption is minimal, political risk is very low, and the crime rate in Iceland is one of the lowest in the world.

Natural hazards are less frequent than in many other locations. They have not prevented multinationals from investing substantially in Iceland. Despite its name, Iceland has a relatively mild climate. The mean annual temperature in Reykjavík is -0.5°C (31°F) in January and 10.3°C (51°F) in July.

Low land and building costs

Two technical parks are under development. The University of Iceland has a technical (science) park in central Reykjavík at a site close to the campus. The 50,000 m2 complex has space to rent in 14 buildings linked by hallways.