From Power Guzzlers to Energy Prosumers: Denmark’s Solution for Coexistence in the AIDC Era [AIDC Era of Coexistence] ⑧

Editor’s NoteIn the era of artificial intelligence (AI), the government has announced plans as part of its three major mega-projects to build a total of 18.4 GW worth of data centers by 2035, positioning this initiative as a driving force for the nation’s future growth. While data centers once served only as facilities that supported IT services, web applications (apps), and data storage and sharing, they are now evolving into industrial platforms that produce and supply AI computing resources. However, despite a shared recognition of data centers as core infrastructure that determines national industrial competitiveness, there remain many challenges to be overcome before the expansion of AI data centers (AIDC) can be achieved. The Asia Business Daily has directly investigated overseas cases—such as Finland, Denmark, Germany, and the Netherlands—that have navigated issues surrounding AIDC, including power, permits, water supply, and community conflicts. We also seek solutions for how AIDC can become an asset that coexists with local communities in Korea.

While countries around the world struggle with attracting data centers and balancing electricity supply and demand, Denmark has captured attention by establishing an eco-friendly energy ecosystem in cooperation with big tech (large information technology companies). Denmark is also recognized for transforming data centers into ‘energy prosumers’—facilities that contribute to renewable energy production and grid stabilization—while successfully resolving conflicts through transparent communication with local communities.

According to the Denmark Data Center Map as of August 21, there are currently 90 data centers in operation in Denmark. The full-scale competition for data center investment began in 2015, when Apple decided to invest in its first data center outside the United States, located in Viborg. Since then, major global tech companies—Meta (Odense), Google (Fredericia), and Microsoft (Western Jutland)—have successively established facilities in Denmark.

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Unlike other countries that have faced problems such as site saturation and grid congestion, Denmark has secured its advantage through grid stability and connectivity via submarine cables. The government has also actively supported the attraction of data centers in terms of expanding foreign direct investment, enhancing digital infrastructure, and promoting balanced regional development.

Institutionally, the power purchase agreement (PPA), in which power generators and consumers enter into long-term fixed-price contracts, has played a significant role in attracting data centers. For example, Google and the Danish energy company Better Energy announced a partnership to build three solar power plants with a total capacity of 100 MWp (megawatt-peak). Through a 10-year PPA, Google was able to secure renewable energy for use in its Fredericia data center.

Merima Dzanic, Chief Operating Officer (COO) of the Denmark Data Center Industry Association (DDI), and Christine Kjaer Jacobsen, Head of Communications, posed for a photo after an interview on the 1st of last month (local time) in Fredericia, Denmark. Photo by Hyunju Lee

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Merima Dzanic, Chief Operating Officer (COO) of the Denmark Data Center Industry Association (DDI), said, “Long-term PPAs represent the overall trend among Danish data centers,” adding, “Over the past decade, big tech companies have invested in renewable energy, making its price more competitive.” She further noted, “We should not view data centers as facilities that merely consume energy, but rather as ‘prosumers.'”

This does not mean that Denmark is free from all conflicts related to data center expansion. Issues such as grid overload, water usage, noise, and concern about electromagnetic waves have also sparked opposition due to misunderstandings. Denmark is addressing these conflicts through transparent communication and a bottom-up governance approach that starts from the early stages. Data center developers hold community briefings with local residents from the early site selection stages, providing transparent disclosure about the project, power and water consumption, job creation effects, and holding Q&A sessions.

Dong ryeol Lee, Ambassador of the Republic of Korea to Denmark, explained, “When building infrastructure, Denmark not only minimizes early investment risks through government measures such as the feed-in tariff (FIT) system and grid priority access, but also enables residents to become project stakeholders by allowing them to participate in equity and actively express their opinions.” He further stated, “The driving force that transformed resident opposition (NIMBYism) into proactive engagement was the power of institutions that fostered deep trust within the local community by addressing the question ‘Why is this project necessary?’ at its core.”

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This special report was produced with support from the Press Promotion Fund, financed by government advertising commissions.

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