Reykjavik | Choosing a sustainable data center is essential for every green signage strategy. Even in Europe, many data centers are still powered by fossil energy. Iceland has renewable energy sources (geothermal and hydroelectric) in abundance and benefits from its location and the AI-driven data center boom.
Eco-levers for digital signage mostly revolve around hardware and operations. But data center operations are generating an often neglected, but increasingly relevant share of the carbon footprint for DooH and digital signage networks. Especially with programmatic and AI features becoming the next big thing in the industry, cloud computing power is essential.
While driving through the ‘metropolitan’ region of Reykjavik, the wonders of nature are visible at many corners. The steam released by mini geothermal power stations can be seen everywhere – a reminder that renewable power is available in abundance across the volcanic island.
Data Center naturally cooled
A great place for data centers, which consume huge amounts of energy. The Icelandic data center industry has been growing rapidly and has a big role to play in building the digital infrastructure of the future to support AI driven solutions.
The global data center industry is expected to experience significant growth (10,9% CAGR 2023-2030) over the next decade, driven by an increasing demand for cloud computing, AI, and other data-heavy technologies.
A great opportunity for Iceland
Iceland is powered almost entirely by renewable energy sources (geothermal and hydroelectric), which aligns with the growing demand for sustainability in business operations. The island-nation at the artic circle seems like the go-to location for “green data” offering a carbon-free footprint for data centers.
The abundance of cheap, renewable energy in Iceland translates into lower electricity costs, which are typically the largest expense for data centers. Iceland’s windy and cold weather helps – cool climate drastically reduces the need for artificial cooling, a major operating expense for data centers in warmer climates.
Iceland’s location between North America and Europe makes it a natural gateway for data traffic between the continents. This allows companies to reach customers on both sides of the Atlantic with minimal latency and embedded in EU-legislative.
Hyperscalers invest more than 300bn this year
Microsoft, Alphabet, Amazon, and Meta predict that AI spending will exceed $320 billion this year, up from $151 billion in 2023. Meanwhile, OpenAI and SoftBank announced plans last month for a $500 billion US AI infrastructure project called “Stargate.”
