Third quarter 2026

The European data center market continues to be driven by structural growth in artificial intelligence, cloud computing and digitalisation. As demand for compute capacity increases, availability of suitable sites with access to power has become the key bottleneck across many established European markets. Traditional hub locations such as Frankfurt, London, Amsterdam, Paris and Dublin are experiencing increasing constraints related to power availability, permitting and land access, resulting in growing interest in alternative locations that can support large-scale data center developments.

Against this backdrop, Northern Europe is emerging as one of the most attractive areas for data center investment. Norway, Sweden, Finland and Estonia combine abundant low-carbon power, competitive electricity prices, strong digital infrastructure, supportive climatic conditions that enable efficient cooling, and a stable political environment. These advantages are relevant for hyperscale, AI and cloud operators seeking large-scale capacity in a market where power and reliability have become critical success factors.

Magnora Data Center's strategy is focused on capturing opportunities early in the value chain by securing land, grid access, zoning and permitting rights before projects reach the construction phase. The Group's flexible investment mandate allows it to pursue attractive opportunities across multiple geographies, project sizes and development stages. This includes both greenfield developments and brownfield opportunities, as well as selective exposure to operating data center assets where such investments can strengthen market insight, technical competence, commercial relationships, and financial return.

The resources behind Magnora and Magnora Data Center have a track record of innovation and high financial performance. Magnora’s first investment in the data center business was made in September 2025 and a year later Magnora Data Center was a well-established listed company with a market cap of NOK 1.7 billion.

Knowing the market, acting on opportunities and developing the portfolio are top priorities. The current market environment offers an attractive opportunity set for experienced project developers. As demand for data center capacity continues to outpace supply in several European markets, ready-to-build projects with a clear path to power, permitting and development are expected to command increasing strategic value. With a growing portfolio in Northern Europe and Italy, Magnora Data Center is positioned to match these long-term market trends while maintaining a capital-light and flexible business model.

The Group screens and sources opportunities (market analysis, due diligence, risk assessment) before initially committing typically NOK 10–40 million when starting or entering a project. From there, projects move through landowner agreements (normally option agreements), grid connection work, environmental assessment and concessioning, and technical design, until reaching a farm-down point at or before ready-to-build. A data center project typically follows a five-stage cycle over approximately 6-36 months: 1) site identification (land secured with exclusivity), 2) preliminary power (indicative grid capacity and timeline established), 3) ready-to-build (grid reserved, permits secured, site de-risked), 4) construction, and 5) operations. The Group normally divests projects at or before ready-to-build but may in some cases also follow projects longer.

Our definition of a project is when Magnora Data Center has secured property for a data center, based on detailed evaluation of grid, the site, environmental and other aspects, and is then developing the project in respect of grid access, building permit and the other critical items.

The Group's portfolio stood at 910 MW gross (700 MW net, owner share adjusted) across Norway, Sweden, Finland, Estonia and Italy as of end of Q3, with projects reaching ready-for-sale status on a staggered timeline.

All greenfield projects remain pending permitting and grid access, underscoring that the near-term timeline is governed less by construction schedules than by the pace of de-risking work with grid allocation and permits, ahead of planned farm-downs. Some projects are considered ready for marketing now in 2026, and others forecasted in 2027, 2028, and 2029.

One example of a ready-to-market project is displayed below.

The Group builds on Magnora ASA’s approach of minimum 5x return on investment, relatively early sales, and limited construction and operations risk on its balance sheet.