Letter from the CEO
I’m very pleased to give this update on another exciting quarter. The largest change during the quarter is our expansion into the data center (“DC”) industry. I would like to thank and welcome our new business partners on data center operations and development. In Sweden, our new subsidiary Magnora Data Center AB is led by serial entrepreneur Peter Nygren (founder of Arise Windpower and active owner in Helios) with whom we have collaborated for several years. In Norway, we have joined forces with Storespeed AS through an acquisition jointly with Blix Group AS. Both are highly competent organisations with a more than 20-year track record in the industry. The DC growth opportunity is rare and fits our landbank, relations, team and spirit extremely well.
We aim to develop a unique greenfield portfolio of land, grid and permits for the hyperscale DC market projects of 20 MW plus. In Norway, it is a requirement that a DC operator is part of the grid application to be eligible for a power agreement with the grid company. Storespeed would then be one of many important keys for our success in the development space. We also believe that Storespeed can become very profitable in collaboration with Blix Solutions through joint marketing, branding and incremental expansion through e.g. leases.
We have expanded into the data center industry because of the growing market and the match with our skill set. Magnora has broad experience in developing green energy projects, which means securing land, power-grid connection, environmental permits, construction permits, etc. – essentially the same as in development of data center projects, with the exception of fibre connection. Magnora has deep insight into the power market in the Nordics and can find suitable sites where excess power can be utilised for data centers. Our combination of technical competence and customer orientation will be well applied when offering data center capacity and services.
We experience that local communities ask for data centers to be accompanied by new green electricity, where we have an advantage. Communities and grid companies also normally prefer or require that data center developers are DC operators already, which is now integrated in Magnora. And for us, engaging in both the supply and the demand side of power is sensible in terms of balancing revenues over time. I would like to underline that we have been well received by over a dozen developers who see a need for a co-developer such as Magnora with expertise, DC operations and funding.
I also want to emphasise that Magnora’s core assets and activity are still our green energy projects being developed towards ready-to-build status. We have sales processes and dialogues across all our main markets, and most notably in South-Africa, Germany, Italy and the UK. Some processes are progressing over longer timelines, consistent with current market dynamics, but progress is steady, and we continue to experience significant interest from power producers and infrastructure funds for high-quality projects. This accounts for all the renewable-energy technologies we operate in – wind power, solar power and battery energy storage. Regarding the timing of transactions, Magnora’s solid balance sheet allows us to advance projects steadily and while remaining pragmatic about when to sell. Our ambitions and outlook for the project portfolio and project sales remain unchanged.
Our commitment to accelerate the green energy and digital transformation is strong. According to a report published by the think tank Ember on 7 October, renewables surpassed coal’s share of the global electricity mix in 2025. The data center market in Europe has historically been lagging the US market by 2-3 years. We now see great demand for DC projects in Europe expecting 4-fold growth over the next decade. This will create great opportunities for our company with our skill sets and current landbank that complements the DC market with access to land and power. Despite setbacks in geopolitics and regulations, progress is possible when technology advances and companies like Magnora and our peers continue to invest and drive change. Magnora will continue to focus on identifying and developing projects that address the most urgent needs in the markets where we operate, with high emphasis on customers, top quality and solid returns on investment. I look forward to continue delivering on our ambitions and our stakeholders’ expectations.
Thank you for your interest in this report. Please do not hesitate to reach out to me or my colleagues with any questions, ideas, or feedback.
Erik Sneve, CEO