Nscale, Nordkraft Form Venture to Run Narvik AI Data Center

Nscale and Norwegian energy group Nordkraft have formed a joint venture to operate Nscale’s AI data center facilities in the Narvik region, formalizing a local partnership as the UK-based AI infrastructure company advances one of Norway’s largest planned compute campuses.

The new company, Nordscale Operations AS, will manage operations at Nscale’s AI data center in Kvandal, near Narvik, the companies said Monday. Nscale Norway AS will own 51% of the venture, while Nordkraft AS will hold the remaining 49%. The entity will be based on site in Bjerkvik, outside Narvik, and is expected to begin operations in 2026.

The move gives Nscale a local operating partner as it scales its Narvik project, where the company has said it plans to deploy large-scale AI compute capacity. Nordkraft has been involved since construction began in 2025, providing operational services during the development phase. The joint venture is intended to cover data center operations and facilities management, including technical, mechanical, HR and health-and-safety functions.

Nordscale is also expected to hire for several operational and management roles in Narvik and work with local and national suppliers for services such as catering, cleaning, logistics, snow removal, maintenance and specialist technical support. The companies did not disclose the number of jobs expected to be created or the financial terms of the partnership.

“This partnership illustrates Nscale’s commitment to Northern Norway and the importance of building long-term operational capability in the region with local partners,” Stian Jenssen, Nscale’s managing director for Scandinavia, said in the announcement.

The partnership comes as Nscale accelerates its broader AI infrastructure buildout. In April, the company said it expanded an agreement with Microsoft to deliver additional high-performance AI compute capacity in Norway in 2027, adding more than 30,000 Nvidia Rubin GPUs to its 230-megawatt Narvik campus.

Nscale also secured $790 million in financing in May for the Narvik project, with an additional $790 million uncommitted accordion feature for a further 115 MW expansion.

Nordkraft’s role gives the project a partner with deep regional power and infrastructure experience. The Narvik-based energy group traces its history to 1910, owns and operates the regional power grid, serves about 52,000 grid customers and produces or operates more than 2.6 terawatt-hours of renewable energy annually.