Finnish power solutions provider kW-set Oy has become a critical partner in enabling atNorth’s rapid expansion of data center operations across the Nordic region, delivering essential turnkey backup power systems from Denmark to Iceland. The collaboration, which began in 2023, underscores a crucial reality in the data center industry: the continued reliance on diesel generator technology to ensure uninterrupted service, even as the sector pushes toward greater sustainability.
The partnership started when atNorth required a reliable emergency power solution for its FIN02 facility in Finland and lacked the large in-house engineering teams typical of hyperscale operators. kW-set secured the contract to supply six generators, and the relationship has since expanded to encompass atNorth’s entire Nordic portfolio. This growth highlights both the logistical capabilities of kW-set in delivering complex systems across challenging geographies and the strategic importance of the Nordic region as a burgeoning hub for data infrastructure, driven by the availability of sustainable energy and increasing capacity constraints in traditional European markets.
A Strategic Power Partnership
The collaboration between atNorth and kW-set Oy began as a tactical solution to an immediate operational need and has since evolved into a strategic alliance. When atNorth initiated its first major Nordic data center project in 2023, it needed a robust backup power system but faced the common challenge of not having a specialized internal team to manage the complex engineering requirements. kW-set filled this gap, providing not just hardware but a complete turnkey solution.
Atte Hietaoja, Partner and Chief Sales Executive at kW-set Oy, noted that the initial order for the Fin02 facility was the starting point for a much broader engagement. Following the successful implementation in Finland, the partnership quickly extended to other key locations. “The second phase was Iceland, then Denmark, and now we are supplying all the sites for atNorth,” Hietaoja stated. This expansion demonstrates the trust and reliability kW-set established, becoming the go-to power systems provider for atNorth’s ambitious growth plans across the strategically important Nordic countries.
The Enduring Role of Diesel
Despite significant pressure on data centers to reduce their carbon footprint, diesel generators remain the industry standard for emergency backup power due to fundamental physical and logistical constraints. The standard requirement for data centers is to maintain 48 hours of autonomous energy storage on-site. According to Hietaoja, meeting this requirement with current alternatives is not feasible at the necessary scale.
He explained that using gas or hydrogen would necessitate storage facilities 10 to 20 times larger than those required for diesel. The space demands for battery technology are even more prohibitive, requiring approximately one million times more volume. This makes diesel the only practical choice for ensuring the high level of reliability and uptime that data center clients demand. The operational reality is that these generators are used infrequently, primarily for scheduled testing and during rare power outages, which keeps their overall emissions profile low.
Navigating Nordic Logistical Hurdles
As the partnership expanded beyond Finland, kW-set’s logistical expertise was put to the test. Delivering large, heavy, and complex generator systems to remote Nordic locations, including Iceland, presented significant challenges. The successful delivery to Iceland was a notable milestone, involving a sea journey of over 3,000 kilometers—a distance comparable to shipping from Finland to Spain.
This demonstrated ability to manage complex supply chains across difficult routes has become a key competitive advantage for kW-set. As major European data center hubs like Frankfurt and London reach capacity, operators are increasingly moving into less crowded regions. Hietaoja observed that this market shift is driving growth in the Nordics, which offer abundant land and, crucially, access to sustainably generated energy. kW-set’s proven ability to deliver essential infrastructure to these new locations positions it as a key enabler of this regional expansion.
Innovations in Sustainability
While diesel remains a necessity, both kW-set and atNorth are actively working to mitigate the environmental impact of backup power systems. The primary strategy involves the use of advanced, cleaner fuels. All generators supplied by kW-set are capable of running on Hydrotreated Vegetable Oil (HVO), a form of renewable diesel.
Fueling a Greener Future
The use of HVO can reduce total emissions by up to 90% compared to traditional fossil-fuel-based diesel. This provides a significant and immediate improvement in the environmental performance of the backup power infrastructure. Hietaoja confirmed that this is the case for the systems deployed at atNorth’s facilities. By combining the reliability of diesel engine technology with the benefits of renewable fuels, the companies are addressing sustainability concerns within the practical constraints of data center operations.
Low Operational Emissions
A second key aspect of the environmental strategy is the operational model of backup generators. “The diesel generators are used mainly for emergencies,” Hietaoja noted. “The running hours are really low, and because they are operated only a few hours a year, the total emissions are minimal.” This low utilization factor, combined with the use of HVO, results in a negligible environmental impact over the lifespan of the equipment compared to the facility’s primary power sources, which in the Nordics are predominantly from renewable hydro and geothermal energy.
Market Growth and Diversification
The rapid growth of the data center market, particularly in the Nordic region, is creating new opportunities for suppliers like kW-set. The capacity crunch in traditional European flagship markets has accelerated the shift towards countries like Finland, Sweden, Denmark, and Iceland. These nations are favored for their stable grids, cool climates, and strong focus on sustainable energy production.
This trend has not only solidified kW-set’s core business but has also prompted the company to diversify its product offerings. In response to direct customer requests, kW-set has recently expanded its portfolio to include the manufacturing and sale of E-PODs and power pods. “We have had many requests from customers to have an E-POD or power pod supplier like us, so we have actually started this year to also manufacture and sell E-PODs and power pods,” Hietaoja said. This strategic move into adjacent product categories allows the company to offer more integrated solutions and capture a larger share of the growing data center construction market.
