Understanding the role of the modern data center

Beyond the headlines: Understanding the role of the modern data center

By Howard Shutt, Director Hyperscaler Sales

Today, data centers are no longer seen as isolated industrial sites – they are essential infrastructure supporting AI, cloud services, national resilience and the energy transition. atNorth’s own developments across Iceland, Denmark, Finland, Norway, and Sweden reflect this shift, with demand increasing for sustainable, high-density infrastructure capable of supporting next-generation computing workloads. 

While questions around energy, land use and community value remain at the forefront, the situation is evolving. Advances in technology, sustainability and community engagement are redefining how these facilities operate and how they contribute to local regions. 

Understanding the real local impact of the data center today 

One of the most common assumptions is that data centers create little value for the communities that host them – this is simply not the case. 

Today, the Data Centre industry supports a broad range of skilled jobs – from technicians, electricians and engineers to security specialists, facilities teams and a deep network of local contractors and suppliers. During both construction and operation, the industry generates demand from regional businesses and contributes to long-term economic activity through investment, taxation and localized procurement. An independent analysis conducted by KPMG¹ at atNorth’s ICE03 data center in Akureyri, Iceland showed that for every employee atNorth directly employs, 12 jobs were supported locally. 

atNorth’s developments across the Nordics demonstrate this wider impact. In Iceland, the company’s presence in Akureyri has contributed to regional investment, supporting local employment and partnerships that extend beyond the data center itself. Ásthildur Sturludóttir, the Mayor of Akureyri in Iceland estimates atNorth’s total investments in the town will equate to 16 billion ISK, with the potential to reach 30 billion ISK. 

Responsible operators are also increasingly working with schools, municipalities, charities and community organizations to understand local priorities and create lasting social value. This includes partnerships, educational programs and community sponsorships designed to enhance local services beyond the operational footprint of the facility. 

Community engagement is no longer something that happens once the planning permission has been secured; it is a responsibility from the earliest planning stages and throughout the entire lifecycle of a site. It is a collective process where trust in the community is earned through transparency, communication, and local community commitment.  

Environmental impact is about more than energy consumption alone 

Environmental concerns remain central to discussions around data center development, but the industry is making significant progress in reducing its environmental impact while supporting wider sustainability goals. 

Surplus heat, once viewed simply as a by-product of operations, is increasingly being recognized as a valuable resource that can be reused to heat homes, schools, hospitals and public buildings. By transforming surplus heat into a resource for local communities, data centers are becoming a valuable part of wider country energy networks. 

atNorth’s heat reuse projects in the Nordics demonstrate how this approach works in practice, with partnerships that provide heat to local businesses and support low-carbon community infrastructure. In Finland, atNorth has partnered with Kesko Corporation to recirculate surplus heat generated at its FIN02 site to a neighboring branch of the Finnish retail giant. At its DEN02 campus in Denmark, atNorth has announced a partnership with Selected Group to supply surplus heat to its new greenhouse development, which intends to support low‑carbon, year‑round food production. These partnerships demonstrate how digital infrastructure can create meaningful value and contribute to a wider circular energy ecosystem.  

The same principle applies to land and energy infrastructure. atNorth’s Kouvola campus in Finland is transforming a former paper mill site into a modern data center campus, repurposing the former industrial facility to support digital growth and create new economic opportunities. atNorth’s design emphasizes renewable‑powered sites located where clean energy is abundant and grid capacity can grow in a planned, responsible way.  

Rather than simply consuming resources, data centers have the potential to become active participants in more resilient and efficient local and regional systems. Concerns around noise, traffic and local disruption are addressed through careful planning, environmental permitting and operational design 

The opportunity to drive digital and economic growth 

As demand for digital services continues to grow, conversations around the infrastructure need to evolve alongside the industry itself. 

The biggest misconception isn’t about jobs or energy use, but the belief that data centers exist in isolation. In order to secure a sustainable digital future, operators have a responsibility to engage openly with communities, build sustainably and demonstrate meaningful local value – whether through supporting local employment, strengthening local power or networking infrastructure resilience or contributing surplus heat to the community. 

This also requires a broader understanding of the role that data centers can play. At atNorth, we believe the future of data center design requires a blueprint that brings together sustainability, regenerative design and community integration, creating infrastructure that supports digital growth while delivering lasting environmental, economic and social value. 

This next generation of data centers has the potential to become far more than the infrastructure underpinning our digital lives. By working collaboratively with communities, businesses and energy partners, these sites can become the foundation of digital innovation delivering strong economic growth for a more connected, resilient and sustainable future.