Landsvirkjun signs 30-MW PPA with Advania Data Centers

Iceland's state-owned electricity producer Landsvirkjun has signed a 30-MW power purchase agreement (PPA) with Reykjavik-based IT company Advania Data Centers.

The contract will see Landsvirkjun supply power to Advania's data centre in Reykjanesbær from its power station network, which comprises 14 hydropower stations, three geothermal stations and two wind turbines. The deal supports Advania's growth as efforts are underway to expand the data centre campus and the technology company expects to triple its operations in Iceland in the near future. Advania operates in the area of high performance computing, blockchain technology and high density compute hosting.

The companies note in an announcement that Iceland offers favourable conditions for data centres due to its cold climate and abundant renewable energy. Landsvirkjun said it is currently expanding the Burfell hydropower station to meet growing demand for energy.

"Iceland is an ideal setting for the operation of data centers and the sale of electricity from renewable energy sources reinforces Landsvirkjun’s own operations while supporting the further growth of the information technology sector in Iceland," said Landsvirkjun chief executive Hordur Arnarson.

Earlier this month, Landsvirkjun reported that 2017 had been a record year for energy production and operating performance. Profit before unrealised financial items rose 30.4% to USD 153.4 million (EUR 125.6m), while operating revenues expanded by USD 62.7 million to USD 483.1 million, helped by higher aluminium prices and an increase in electricity sales to 14.3 TWh.

(USD 1 = EUR 0.819)

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