HÚSAVÍK, Iceland – September 28, 2025 – GIGA-42 Holdings Limited has signed a Memorandum of Understanding with Norðurþing Municipality to collaborate on the development of a large-scale, AI-optimised data centre at Bakki, in northern Iceland. The MoU establishes a framework for cooperation on site allocation, zoning, infrastructure development, and permitting for this world-class facility.
Project Overview
The Bakki AI Data Centre project represents a phased, modular facility beginning with a target 50MW first phase, with potential to scale to 200MW, positioning it as one of Iceland's first hyperscale data centres. The project will leverage Iceland's abundant geothermal and hydroelectric power, natural cooling from Arctic climate conditions, and integrated district heating networks to create one of the most advanced and sustainable AI-focused data centres in Europe.
"This MoU marks a critical milestone for GIGA-42 and demonstrates the strong collaborative relationship we're building with local stakeholders. Bakki will bring cutting-edge AI infrastructure to North Iceland while creating meaningful employment and economic opportunities for the region."
— William Tasney, CEO of GIGA-42
Key Benefits for Norðurþing and Húsavík
The Bakki project is designed to deliver substantial economic and social value to the region:
- Job Creation: Approximately 100 individuals will be involved in construction, design and planning. Once operational, the first phase is expected to create 50-80 permanent technical jobs in electrical engineering, power generation, mechanical engineering, refrigeration technology, and systems engineering
- Heat Recycling Ecosystem: 25-100MW of recoverable heat available for district heating, aquaculture, and greenhouse applications, creating new local industries and economic opportunities
- Infrastructure Development: Direct proximity to 220kV substation and existing district heating infrastructure
- Community Partnership: Long-term collaborative relationship with mutual commitment to sustainable development