Europe’s data centre landscape is entering a period of realignment. As hyperscale operators pursue cleaner, cheaper power in the Nordic region, London is adjusting its strategy to focus on denser, high-value workloads that sit closer to the edge of networks. What was once a near-automatic choice to cluster in West London is now being rebalanced by a wave of investment in Finland, Norway, and Sweden.
Why the Nordics Are Pulling Ahead
Over the past two years, the Nordics have become magnets for hyperscale development. Companies like Google and Microsoft have expanded their presence in Finland, tapping into abundant clean power and cooling efficiencies. Google’s expansion of its Hamina campus—already known for sea-water cooling—is just one example of hyperscalers investing heavily in the region to meet rising AI demand.
Norway is seeing similar momentum, with infrastructure players like Bulk developing massive campuses powered entirely by renewable energy. Beyond the cool climate, the real advantage lies in the power grid. Norway’s electricity supply is nearly 100% low-carbon, dominated by hydropower, offering both price stability and minimal carbon intensity. Finland’s mix of nuclear, wind, and hydro also delivers one of the cleanest grids in the world, making the region a clear choice for operators prioritizing sustainability and scalability.
London’s Challenge: Power Over Land
London continues to offer unrivalled connectivity, particularly for financial services, media, and government workloads. The density of cloud on-ramps, internet exchanges, and interconnection makes it indispensable. Yet the main constraint is no longer space—it’s power.
Several boroughs in West London have already flagged grid capacity shortages, with new large-scale connections forced into long waiting lists. Even with reforms underway to speed up access, the queue remains daunting. Developers warn that unless grid access becomes faster and more predictable, large AI builds will gravitate to places like the Nordics, where the energy challenge is already solved.
Latency: When Distance Doesn’t Matter Much
The question of latency often comes up when considering a move north. For many workloads—such as AI training, analytics, backups, or bulk storage—the round-trip time between London and Nordic metros (typically 20–35 milliseconds) is more than acceptable. These functions do not require ultra-fast responses.
But not all workloads can be pushed away. Activities like financial trading, gaming, and certain real-time AI inference require extremely low latency, measured in just a few milliseconds. Those workloads will continue to anchor in or near London, where proximity to end users and market data feeds is essential.
Rebalancing Core and Edge
This division points to a likely outcome: the Nordics will absorb more hyperscale campuses and AI training clusters, while London transitions to hosting denser, more specialized facilities. London’s future will revolve around private interconnect hubs, sovereign data requirements, and high-density racks designed for inference and analytics at the edge.
London’s Next Play: Density and Differentiation
As AI drives rack densities to 30–70 kW and beyond, London data centres will need to embrace advanced cooling methods, from direct-to-chip solutions to liquid-cooled designs. Those operators capable of adapting will position themselves to capture the “edge of AI” demand.
At the same time, London’s greatest strength—its unparalleled interconnection ecosystem—remains a key differentiator. Facilities like Telehouse in Docklands highlight the city’s ability to combine robust power delivery with unmatched connectivity, ensuring its continued importance for mission-critical, time-sensitive operations.
Waste heat recovery is another area where London can learn from the Nordics. Cities like Stockholm already integrate data centre waste heat into district heating systems at scale. Similar initiatives in London, backed by municipal engagement, could improve sustainability and bring added value to communities.
Two Markets, Two Roles
The rise of Nordic campuses doesn’t spell decline for London—it signals specialization. The Nordics will likely handle the heavy-lifting of AI training and other energy-intensive but latency-tolerant tasks. London, meanwhile, will sharpen its focus on premium edge workloads, interconnect, and regulatory compliance.
Operators that adapt by linking Nordic baseload operations with London’s edge specialisation will be best positioned for the future. Rather than a competition, the evolving landscape points toward a partnership: the Nordics as the powerhouse of AI-scale computing, and London as the connectivity and edge intelligence hub.
This rebalancing doesn’t weaken London’s role—it redefines it, ensuring that both regions become stronger pillars of Europe’s digital infrastructure.
