HELSINKI, March 7 (Reuters) – Microsoft is altering its data center strategy, prioritizing the availability of emission-free power over user demand or the creation of supply. The company sees the Nordic region as an ideal location for this shift.
Alistair Speirs, Microsoft’s senior director for Datacentre & AI Infrastructure, explained that growth in artificial intelligence is driving new workloads. These are not tied to specific locations by legislation, allowing Microsoft to build data centers where sustainable power is readily available.
“Efficient energy infrastructure is going to be the deciding factor for a lot of these areas,” Speirs said during a visit to Finland.
Microsoft operates approximately 300 data centers globally and plans to invest around $80 billion more in them by the end of June. Part of this expansion includes developing a dozen new data centers across three sites in Finland. The company aims to become carbon negative by 2030. This means finding renewable power sources that can sustain its AI-driven expansion of cloud-based data storage and usage.
Microsoft has partnered with local district heating producers, such as utility Fortum, to redistribute waste heat from the data centers to heat homes. This collaboration will also help Fortum move closer to its goal of carbon neutrality in its district heating business in Finland by 2029.
Speirs highlighted the advantages of the Nordic region, particularly Finland, for this type of infrastructure. These advantages include a cold climate for data center cooling, reliable power grids, and abundant carbon-neutral power.
Previously, Microsoft data center expansion was driven by demand. The company then shifted into creating supply where it anticipated demand. Now, they have adopted a “power first” approach, where access to affordable and emission-free power is the key factor in investment decisions.
Reporting by Anne Kauranen; Editing by Susan Fenton
