Behind the scenes: choosing a data center site

Behind the scenes: what really goes into choosing a data center site

By Jóhann Þór Jónsson, Director of Site Selection, atNorth

Most people think choosing the right location for a data center site is relatively straightforward: find available land, secure enough power, and start building. Ten years ago, that may have been closer to reality. Today, it’s one of the most competitive and strategically complex parts of our industry. 

The growth of AI and high-performance computing has accelerated change. Power availability is tightening across Europe, competition for suitable land is increasing, market demand for ever increasing sizes of project and communities expect infrastructure projects to deliver long-term local value. 

At atNorth, site selection is not only about finding space to build. It’s about identifying locations where we can scale responsibly, empower local communities, and create infrastructure that works as part of a broader ecosystem. That process starts long before construction begins. 

The era of “build anywhere” is over 

One of the biggest misconceptions about data centers is that operators can simply develop wherever land is cheap and available. Historically, many facilities were built where land costs were low and power demand was modest.  

Power is still one of the first things we evaluate when assessing a potential site, but “good power access” means something very different today than it did even a few years ago. Grid infrastructure is under growing pressure – connection lead times are extending and competition for strong grid points is intensifying. In some cases, tighter scrutiny locally for concessions related to the infrastructure and broader geopolitical events are also affecting energy infrastructure and supply chains, adding further complexity to long-term planning. 

At the same time, the economics of development have shifted significantly. As competition for land in the right location increases, more stringent permitting processes are being applied the investment required before construction even begins can be significant. As a result, we now need to think carefully about how our future developments fit within local communities and regional infrastructure long term, so that when the right site becomes available, we can act decisively and move with confidence. 

Relationships matter more than people realize 

One aspect of site selection that people often underestimate is how relationship-driven it really is. A lot of important conversations should be happening long before formal agreements are signed – this is where the importance of listening becomes critical. Whether it starts with a simple coffee with the mayor or speaking directly with local landowners about what development could mean for the region, our approach is always to ensure early dialogue with the community so that we can understand their needs and map opportunities to these in each location. 

At atNorth, we don’t see ourselves as simply deploying infrastructure into a region. We see site development as a long-term partnership with the communities and ecosystems around us. We want these communities to understand who we are, how we work, and what we are trying to build. We do this by being visible from the get-go, participating in local information meetings and maintaining interactive communication with the local community.  

Competition for land and power means operators also need to stay very close to developers, municipalities, utilities, and local stakeholders. Being responsive is crucial – we need to answer questions, address concerns, and build credibility. In many ways, successful site selection depends as much on trust and relationships as it does on infrastructure itself. 

Designing with the land, not against it 

As infrastructure demand increases, it’s becoming more important to think beyond the footprint of the facility itself. 

At atNorth, we increasingly focus on designing with the land, not against it. This means considering biodiversity, environmental impact, and long-term sustainability from the earliest stages of planning. In some cases, such as with our DEN02 facility, we intentionally acquire more land than we immediately need so we can preserve natural areas and support regeneration efforts around the site. 

Heat reuse is another increasingly important part of the conversation. At many of our sites, facilities are designed to use advanced heat recovery systems, as a way to lower carbon footprint, reduce energy consumption and improve overall efficiency. For example, in Espoo, Finland, our heat reuse partnership with Kesko Corporation allows us to deliver waste heat generated at our FIN02 data center to a neighboring branch of the retail company.  

While the opportunities vary depending on the location, the key is that data centers should not be viewed as isolated assets but rather integrated into wider energy and community ecosystems wherever possible. 

Data centers can support local potential 

Another outdated perception is that data centers create very few jobs. The reality today is very different. As facilities become more advanced, particularly with growing AI workloads, compliance requirements, and security expectations, the need for highly skilled local teams continues to increase. 

Customers are increasingly seeking dedicated operational teams with specialized expertise, which can create meaningful local employment opportunities over time. Local hiring, education, and training are important to atNorth, and we want the communities around our data centers to benefit directly from our long-term investment. 

Wherever possible, we aim to hire locally, partner with local companies and stakeholders, and support initiatives that help nurture and develop local talent. This includes exploring collaboration with technical universities, vocational schools, municipalities, and other relevant institutions to help strengthen the skills and training pathways needed for future roles in the data center industry. 

We are already seeing the value of this within our own teams. Some of the most rewarding examples are when new developments create opportunities for people to return to smaller communities and build long-term careers there. One example is ICE03, in Iceland, where our Operations Director moved back to Akureyri with her family after several years living in Reykjavík following her university studies. 

The next decade will be defined by opportunity 

Looking ahead, I believe the next decade will be one of the most important and exciting periods our industry has ever seen. 

The growth of AI, digital infrastructure, electrification and concerns over digital sovereignty are transforming how societies think about energy, resilience, and long-term infrastructure planning. That creates enormous opportunities for innovation, and sustainable growth.  

At atNorth, we believe data centers should contribute positively to the regions where they operate. This means creating local opportunities, supporting wider energy ecosystems, and building infrastructure designed for long-term resilience and adaptability. The future of our industry will belong to companies that can focus on how digital infrastructure can support thriving, self-sustaining societies.