Global InterConnection Group Limited, the infrastructure development company, is pleased to announce that its recently formed joint venture, GIGA-42 Holdings Limited (“GIGA-42”), has signed a Memorandum of Understanding (“MoU”) with Norðurþing Municipality, Iceland, to collaborate on the development of a large-scale, AI-optimised data centre at Bakki, Húsavík.

The MoU establishes a non-binding framework for cooperation on site allocation, zoning, infrastructure development, and  permitting, with the objective of delivering a phased, modular data centre facility beginning with a target 50 MW first phase andbuilding up to be one of Iceland’s first hyperscale data centres. The project would leverage Iceland’s copious resources of renewable geothermal power, cold-climate operational efficiency, and district heating networks to create one of the most advanced and sustainable AI-focused data centres in Europe.

Potential key features of the project include:

• Sustainable design: Integration of geothermal energy and heat recycling to align with Iceland’s national climate and energy strategy.

• Economic impact: Creation of over 100 construction jobs and 50–80 permanent operational roles, alongside local training programmes in collaboration with educational institutions.

• Community benefits: District heating reuse, vocational training, and investigations into co-locating new and existing local industries such as aquaculture and greenhouses.

• Infrastructure integration: Close proximity to Landsnet’s 220 kV transmission line and the Bakki electricity substation, and fibre connectivity.

Both Parties will now work through feasibility and due diligence, with a target Final Investment Decision (FID) in 2026 and first phase operations expected in 2027.

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