Research from Finland’s LUT University indicates that Nordic data centers can achieve a reliable, 24/7 power supply using wind and solar energy. By significantly overbuilding renewable capacity and integrating battery energy storage systems with biogas or green hydrogen backup plants, operators can meet the continuous baseload demands of these facilities. While this approach requires substantial excess generation, the study confirms that such renewable configurations are both technically and economically viable. Adjusting operational expectations by slightly reducing annual hours can further improve project economics, offering a competitive alternative to traditional power sources like nuclear energy.
The study modeled an off-grid system capable of providing a constant 1 GW of electricity to data centers. Because these facilities require steady, uninterrupted power that cannot easily fluctuate with weather conditions, researchers found that wind and solar capacity must be roughly seven times larger than the actual demand. This necessary overbuilding results in significant energy curtailment during peak production periods. Furthermore, the team determined that relying solely on batteries is insufficient for long-term stability, necessitating the inclusion of renewable-fueled backup plants to maintain service during extended periods of low wind or solar output.
To evaluate financial feasibility, the researchers compared two scenarios: a full 8,760-hour annual operation and a more flexible 8,000-hour model. The findings reveal that lowering the annual operating requirement by 760 hours can reduce total system costs by 15% to 24%. Despite the high capital requirements for oversized infrastructure, the levelized cost of electricity remains competitive, ranging from approximately €103 to €121 per MWh for continuous supply. In optimal locations, costs can drop below €80 per MWh, demonstrating that renewable-based baseload systems are a viable, faster-to-deploy alternative to nuclear power in the Nordic region.