Farice drives Iceland’s rise as data centres hub via green connectivity

Farice drives Iceland’s rise as data centres hub via green connectivity is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Farice enhances connectivity with new PoP in northern Iceland and satellite fallback
• AI-driven demand pushes data centre growth, driven by renewable power and subsea cables

What happened: Farice adapts infrastructure to meet surging connectivity demand

Farice, an Icelandic fibre and subsea network operator, reports strong growth in the Icelandic data centre and communications sector. Örn Orrason, community & solutions director at Farice, said that recent demand from AI, cloud, content and enterprise operators has increased pressure on network capacity. Farice has three active submarine cables—FARICE-1, DANICE and IRIS—that deliver diverse routes between Iceland and mainland Europe. The IRIS cable, launched in 2023, now complements the older cables to support resilience and capacity.

To serve traffic better, Farice established points of presence (PoPs) in Akureyri, northern Iceland, year on year. The new PoPs improve resilience and connect data centres that locate where renewable energy is abundant. Iceland’s electricity supply is fully renewable. Remoteness, once a hurdle for infrastructure deployment, is increasingly balanced by affordability of green power and strong connectivity. Farice has also partnered with satellite integrator Marlink to build a fallback platform in case terrestrial or subsea links cut. That approach aims to support critical enterprises in remote or islanded locations and provide continuity of service under stress.

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Why it’s important

Iceland is increasingly seen as attractive for data centre investment. The country’s full dependence on renewable power gives it advantage for energy-intensive operations such as AI training or cloud workloads. Subsea cables with diverse routes help reduce latency and risk of isolation. Farice’s investment in PoPs and satellite fallback shows strategy aligned with global standards for resilience.

Developers and enterprises value connectivity reliability and low carbon footprints. Network outages or long cable cuts are costly. Farice’s set-ups reduce risk by adding multiple cable paths and backup systems. Energy affordability helps make operational costs predictable. Also, infrastructure improvements help local regions and remote areas, improving national digital equity. As AI and cloud demand grow, countries with green, stable infrastructure may attract more capital and talent. Investors now weigh sustainability, latency and resilience as much as cost when selecting data centre locations.