Norske Skog Saugbrugs Explores Data Center Partnership, Stock Surges
Shares of Norske Skog jumped on February 27, 2026, following the announcement of a potential collaboration to establish a data center at its Saugbrugs mill in Halden, Norway. The move reflects a strategic shift for the company as it navigates evolving market conditions and seeks latest revenue streams.
Norske Skog Saugbrugs has entered into a letter of intent with Green Mountain to jointly explore the feasibility of the data center project. “This collaboration offers an exciting opportunity for long-term value creation and activity in Halden,” said Geir Drangsland, CEO of Norske Skog. The Saugbrugs site has been identified as a suitable location due to its existing infrastructure and potential for delivering valuable digital services.
The company initiated a zoning process earlier this year to permit data center operations at the industrial site and will continue to operate with the municipality and local stakeholders to finalize the process. Establishing a data center could bring significant economic benefits to the region, including increased investment, job creation, and overall value creation.
“We are pleased to explore this opportunity with Saugbrugs. The site offers unique advantages for data centre operations, and we gaze forward to working together to assess this potential,” stated Halvor Bjerke, Managing Director Nordics of Green Mountain.
The announcement comes as Norske Skog Saugbrugs continues to evaluate the future of its paper production capabilities. The mill’s Paper Machine 6 (PM6) has been idled since April 27, 2023, after a rockslide damaged the machinery. Restarting PM5 in November 2023 allowed the mill to continue serving SC magazine paper customers.
Norske Skog Saugbrugs, originally founded in 1859 as a collection of sawmills, became part of Norske Skog in 1989. The Saugbrugs mill invested approximately NOK 4 billion in the new PM6 during the 1990s and remains one of the largest and most modern production units of SC magazine paper globally. The mill currently operates three paper machines – PM4, PM5, and the idled PM6 – with a combined production capacity of 460,000 tonnes per year.
The company also reported an operating income of 2066 million NOK in 2013, and employed 450 people as of 2019. Norske Skog plans to provide an update on the potential rebuild of PM6 for SC magazine paper and kraftliner production during the second quarter of this year.
ABG Sundal Collier is serving as financial advisor to Norske Skog ASA in connection with the data center exploration process. More information on the collaboration can be found on Norske Skog’s investor relations website.
Norske Skog Saugbrugs is located in Halden, Norway and can be found at Tistedalsgt. 9-11, N-1772 Halden. The company can be reached by phone at +47 69 17 40 00 or by email at info.saugbrugs@norskeskog.com.
