Even Norway is facing an energy crunch.  It is hunting for solutions.


Somewhere between Porsgrunn harbor and the wooded uplands of Lannerheia lurks a problem Norway can no longer avoid.

Porsgrunn is the Norway no tourist guide ever shows. Yes, there is a fjord with its shining blue waters. But there are also smokestacks and men in neon jumpsuits milling among the clank and crash of industry as wisps of smoke and vapor drift overhead.

This is Norway’s industrial heartland, and these businesses came here for one big reason: cheap energy. For generations, they have sipped from what appeared to be a bottomless well. Norway had more clean hydropower than it knew what to do with. Residents benefited with some of the lowest energy prices in Europe. So did businesses. So more came.

Why We Wrote This

Norway’s money and hydropower have insulated it from the world’s energy pressures – until now. The way it solves these challenges could set a global example.

Now, a few miles up the river, Google is building a $700 million data center outside the city of Skien. The amount of energy needed to cool its high-performance servers will be immense. One media report raves: “This decision highlights Norway’s growing attractiveness as a hub for data centers, driven by its robust infrastructure and abundant renewable energy resources.”

The problem is, those abundant renewable energy resources don’t feel all that abundant anymore. Norway’s growing thirst for energy has tipped it from huge surpluses to growing deficits. There are no more hydropower sources left. Many experts suggest wind power is the best solution – with one proposed project above Porsgrunn in Lannerheia. But those efforts have been shut down by voters, deeply unpopular. 

Even Norway is facing an energy crunch.  It is hunting for solutions.

Mark Sappenfield/The Christian Science Monitor

A view of the harbor in Porsgrunn, Norway, which sits at the center of the Scandinavian country’s industrial heartland, April 30, 2026.

Norway has long had an enviable way out of tough problems: money. Lots of it. After the discovery of huge reserves of oil and gas under the North Sea in the 1970s, the government created what is now the world’s largest sovereign wealth fund, valued at $2.2 trillion, or about $390,000 for each Norwegian citizen.

The money has kick-started the world’s most successful transition to electric vehicles, for instance, with EVs now accounting for 98% of new car sales. 

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