US-based Modularity will partner with Icelandic data center operator Borealis to build a new data center facility and subsea cable system in Iceland.
The project, which includes a 100 percent renewable energy-powered data center, will seek to improve data connections between Iceland and the US.
The first phase of the project will be operational by 2026, with completion set for 2028.
No details of the data center or the subsea cable have been shared.
“Iceland, renowned for its substantial geothermal and hydroelectric energy resources, offers an ideal environment for sustainable high-tech data center operations. By leveraging these unique advantages, we are aiming to establish a robust AI hub in Iceland that not only excels in energy efficiency and environmental sustainability but also strengthens and expands the existing data center industry in Iceland,” said Bill Barney, co-founder and chairman of Modularity.
Bjorn Brynjulfsson, CEO of Borealis Data Center, added: “This strategic partnership has the potential to create an interesting and vibrant digital ecosystem for AI and position Iceland as a global leader in IT and AI infrastructure, moving Iceland to the forefront of meeting global demands for sustainable AI infrastructure.”
The announcement is Modularity’s first big move since appointing Christopher Pennisi as CEO in July this year. The company was founded in April and specializes in undersea communications networks through prefabricated modular systems.
Originally founded in 2014, Icelandic operator Borealis was acquired by Etix Everywhere in 2018. French investment fund Vauban Infrastructure Partners then acquired a majority stake in Borealis Data Center in July 2021. Today the company operates three sites in Iceland; one in Reykjavík, one in Blönduós, and one in Fitjar in Reykjanesbær.
The operator also acquired a facility in Finland, its first international expansion, earlier this year.
Currently, Iceland is home to the DANICE, FARICE-1, Greenland Connect, and Iris subsea cables. Data centers on the island are concentrated in the capital city Reykjavik and nearby Keflavik. atNorth and Verne both operate data centers in the latter.
