FOR SUBSCRIBERS

Huge energy requirement must be approved before data centre purchase is finalised

Data centre on Falster requires an electricity connection of up to 350 MW, which is almost 7 times as much as the current peak load of the entire Guldborgsund Municipality. Energinet's connection offer will be the next crucial step.

This is approximately what the data centre will look like. Illustration: GARBE
Published

The power supply determines whether the data centre project in Business Park Falster becomes a reality. Before the deal and thus a possible investment of up to 20 billion kroner can be finalised, there must be written documentation that a very large electricity connection can be established.

This requirement is stated in the terms that the municipality sent to the market when the 35 hectares of commercial land at Nørre Alslev were put up for sale. 

The data centre's power consumption is enormous, and a power connection capable of handling 350 megawatts is needed. Energinet has calculated the current peak load in Guldborgsund Municipality to be around 55 megawatts when consumption is highest. In the most demanding hours, the data centre thus requires a connection that is almost seven times larger than the municipality's current maximum. 

The big plug

Energinet explains that the first step lies with the local grid company, which clarifies whether a project should be connected to the distribution network or the transmission network. If it ends up in the transmission network, it is Energinet that analyses the capacity in the network, other projects in the queue, and the technical profiles for consumption. When the analysis is complete, the investor receives a concrete offer.

- Based on that work, we offer the grid customer a connection point and time, as well as calculate the economics associated with the connection. If the customer accepts these conditions, we make an agreement on grid connection, says area manager at Energinet, Jakob Rosenberg Nielsen.

The offer is exactly the documentation the contract requires. It specifies where the data centre can be connected, when the connection can be ready, and what costs and necessary expansions are included.

Not just a cable

Energinet also points out why a connection of this size is not just a cable in the ground. Lolland-Falster has large amounts of renewable energy, but large consumers depend on simultaneity. There must be power when it is used, even in periods without sun and wind. Therefore, Energinet may need to reinforce the transmission network with more connections so that the supply is stable during peak hours.

If the full connection requires larger expansions, it takes several years to get it in place. However, Energinet also describes a solution that may become relevant for large projects. In some cases, a customer can get a limited connection first and expand later when full capacity is ready. This can keep a project going from the start, but it can also mean a phased build-up of operations while the network is expanded.

Six months to get things in place

All this will be clarified in the due diligence that is currently underway. The buyer has six months to review the project's assumptions before the deal can be finalised. During this period, the central pieces, including the network connection, are tested along with the other technical and legal aspects of the site.

This leaves the project in a rather simple intersection. The municipality has sold a plot of land, which in many other respects appears ready for commercial construction, and the investor has presented a campus plan that can change the area's role on the digital map. 

There is nothing to suggest that a solution cannot be found. The question is what conditions the large connection will have, and how quickly it can be realised. When Energinet has put the connection point, schedule, and price on the table, the investor will know whether the energy requirement can be met within the framework that an AI campus worth billions presupposes.

Buy a subscription and get access

Already a subscriber? Log in here

Personal Subscription

  • Premium access to all content on FemernBusiness
  • Unlimited access to our full archive
  • Newsletters with the most important industry updates
  • Breaking news alerts when the biggest stories happen
  • Website login – stay updated with industry news on the go
Buy subscription

Try FehmarnBusiness for free for 14 days

  • Premium access to all content on FemernBusiness
  • Unlimited access to our full archive
  • Newsletters with the most important industry updates
  • Breaking news alerts when the biggest stories happen
  • Website login – stay updated with industry news on the go
Start free trial