Nammo in the interior needs more electricity to make ammunition for the Norwegian Armed Forces, NATO allies and Ukraine. But the local internet company has promised away free capacity in the power grid for a new data warehouse for TikTok.
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– The authorities must choose between storing cat videos or securing critical social functions, says CEO Morten Brandtzæg to VG.
In the production halls of the Raufoss company Nammo, employees produce missiles and ammunition around the clock. They must greatly expand the facility to deliver billion-dollar orders from the government, the Armed Forces and allied countries – and for Ukraine’s defense war against Russia.
The companies Raufoss business park were originally founded close to cheap electricity from local hydropower. Now they want to expand significantly. But Innlandet is at rock bottom for electricity and has little capacity to receive more from other areas, according to Statnett’s area plan from February this year.
In March, it became known that the Chinese video service TikToks will establish a power-guzzling data center in Hamar, on the other side of Mjøsa.
They have already landed a giant power agreement with the local power supplier.
Now it is uncertain whether they can enter into more large power agreements and Nammo has not yet received a response to its application.
– Today, this grid is more or less full, confirms communications manager at the local power supplier Elvia, Morten Schau, to VG.
Billion dollar contracts at stake
Nammo and Rafoss business park fear that the power situation in the interior stands in the way of expanding and employing more people.
– If we do not get access to electricity, then Nammo will not be able to expand the capacity, which is badly needed, says Brandtzæg to VG.
Norway’s and NATO’s ammunition stocks are rapidly being depleted to help Ukraine defend itself. Last winter, the government announced that it would spend over two billion kroner on artillery ammunition.
The contract only awaits the Storting’s approval in May.
Nammo has started to invest and the construction pits have been blown up, but the whole plan is now at stake. They must have more production premises and electricity to be able to deliver the order from the government, says Brandtzæg to VG.
– Yes we must. Nammo will also increase by 200 jobs over the next three years. It is conservatively estimated. I understand that it is a new situation for the government that we have a power shortage, but then they have to act accordingly. It is hopeless to build on Raufoss without a power agreement.
Other contracts worth several billion kroner are also at stake.
– The alternative for the industry is to look for growth opportunities elsewhere, either elsewhere in Norway or abroad, where you can get access to power, says Brandtzæg.
Elvia is allowed to prioritize between customers who apply for network capacity.
– The rule is that the first person in the queue with mature projects gets access to network capacity first, says Schau.
The power situation causes it to ignite at Raufoss business park, where communications director Fredrik Tangeraas at Nammo and managing director Øivind Hansebråten at Raufoss Næringspark, VG shows around.
Raufoss Næringspark organizes a total of 50 companies with a total of over 2,600 employees.
– We have a total of 12 billion in turnover now and want to double it by 2030. That will create around 1,000 new jobs. But the production of electricity in the interior is too low and the supply lines from other areas too small. This means that we are struggling to get enough electricity to establish more production, says Hansbråten to VG.
Complete blasted plots, production lines for rocket engines, artillery for allies and world-leading high technology for civilian purposes are ready.
– It’s almost like we can’t put the spade in the ground until we know we can buy the power we need to run new production halls, says Tangeraas.
They believe Norway will be made a laughingstock in NATO if TikTok, an app that security services fear is used for espionage and government members now delete from their phones in a hurry, prevents Norwegian arms production to allied countries and Ukraine’s defense war.
Fear of espionage
Hansbråten is generally critical of TikTok establishing itself with data storage in Norway.
– We are worried about the potential for espionage, the uncertainty surrounding national interests and our access to electricity, says Hansebråten.
– You have to ask yourself whether the companies are beneficial to society. Production here contributes to NATO’s security and Norway’s defense capability. It must become a national matter how we prioritize electricity in the interior. The government must take action, says Hansbråten to VG.
He also believes that the National Security Agency (NSM) should intervene.
VG has asked TikTok’s spokeswoman Parisa Khosravi to respond to the criticism, but has not received a response.
TikTok’s deputy director for government relations in Europe, Theo Bertram, has stated to TV2 that the company is not Chinese, despite Chinese co-owners, but is mainly owned by international investors. He also dismisses the security concerns.
Rejects criticism
The planned data center in Hamar will be built and operated by Green Mountain and will trigger investments of tens of billions.
Green Mountain, has signed a power contract with Elvia for the supply of up to 150 MW.
This corresponds to almost ten percent of electricity consumption in the interior. TikTok’s data center can have an annual consumption of up to 1.3 terawatts (TW) – equivalent to half a percent of Norway’s total electricity use.
For comparison, Raufoss Næringspark and Nammo reckon that they will need between 30 and 40 MW.
Managing director Svein Atle Hagaseth rejects criticism of the development.
– TikTok is an application with more than one million Norwegian users, it is legal in Norway and needs to secure the data in accordance with Norwegian and European legislation, writes Hagaseth to VG.
– With this establishment, we fulfill what has been the government’s aim with the data center strategy, namely to attract international players and investments to create value and jobs based on our power locally.
Rejects espionage fears
He points out that Innlandet currently has an electricity surplus – and is a net exporter of electricity throughout the year.
– The data center will take a significant part of this surplus so that the power can be used locally, writes Hagaseth.
– When someone shouts loudly that this is the wrong use of resources, we contribute to the economy and the number of employees to a much greater extent than large parts of the traditional power-intensive industry, writes Hagaseth.
He is not worried about the accusations of espionage.
– I feel confident that TikTok complies with both laws and regulations and has no other intention with the agreement with us than to buy data center services that they need. As previously answered, our infrastructure and systems will be completely separate from TikTok’s systems, writes Hagaseth.
Read also: Norway’s big electricity shortage
Published: 22.03.23 at 13:21
