Data Center Colocation Costs in Iceland: Q3 2026 Price Index

Data centers

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Q3 2026 · 2026-10-01 · H2 2025 – Q2 2026 · 4 AI-ready · 276+ MW · sources

How this market compares

Round-trip times are measured figures from the latency matrix; power tariffs from the index. Cross-connects add $50–$350 per month each on top of any rate. Round-trip · The Index

Why prices sit where they do

Iceland's catalog is anchored by atNorth's three Icelandic sites — Reykjavík, Keflavík and Akureyri — which together account for roughly 136 MW of disclosed IT capacity, led by the 83 MW Keflavík mega site next to the international airport. All three run on Iceland's geothermal- and hydro-dominated grid, built with liquid-cooling-ready whitespace and average 40 kW rack densities. A fourth, independent entrant is Borealis Data Center's Blönduós campus in the north, sited next to the Blanda hydropower station with a 63 MW+ grid connection designed to a Tier 3-equivalent standard, ISO 27001-certified and running on 100% renewable power at a PUE as low as 1.03; the operator has signed a 12 MW power-purchase deal with national utility Landsvirkjun to expand it further. Business power here prices as the cheapest in this index by a wide margin at $0.106/kWh, less than half Germany's rate. None of Iceland's sites carries an independent Uptime Institute Tier certification on record, positioning the country's near-zero-carbon power and cool climate as an AI-training pitch rather than a Tier-certification one.