The Ministry of Business is not aware of AI data center project in Kangerlussuaq

The Greenlandic company Inuit Development Company, headed by businessman Svend Hardenberg, has entered into a letter of intent to cooperate with an American company called AmForge Corporation and director Dan Whaley on a project that will consist of both the construction of a hydroelectric power plant, an AI data center and the establishment of a submarine cable in Kangerlussuaq.

This is stated in a press release issued by Svend Hardenberg.

Drew Horn is part of the management

The website amforge.com states that the American company, in addition to Dan Whaley, also consists of Neil Cohn and Drew Horn.

The latter is also the director of the company GreenMet, which has been investigating American investment opportunities in Greenland for the past year. Drew Horn also has a strategic partnership with Tanbreez, which holds the mining license for Killavaat Alannguat in South Greenland.

Drew Horn has previously held senior positions in both the White House and the US Department of Energy and Department of Defense before establishing GreenMet in 2021. The company has a partnership with Libra Group, which has its roots in Lomar Shipping, which is active in 60 countries in aviation, energy, maritime services, real estate, etc.

The department is not aware of the project

The department for business, raw materials, energy, justice and equality is not familiar with Hardenberg and Amforge's hydropower and AI data center project in Kangerlussuaq.

– We have only heard about it through the media, and the meeting that KNR mentions in their article with Svend Hardenberg, which I held last year, was not about this data center project, says Naalakkersuisoq for business, raw materials, energy, justice and equality Naaja H. Nathanielsen to Sermitsiaq and adds:

– So I have no insight into the set-up they are imagining and the associated economy for them and society. Therefore, I can not say anything concrete about the project. They can of course bid like everyone else, says Naaja H. Nathanielsen, referring to a mentioned tender for a hydroelectric power plant and off-take project.

Hydropower potentials in tender this year

Naaja H. Nathanielsen assesses that Hardenberg's project is based on the use of some hydroelectric potentials that Inatsisartut has decided to exclude from competition this year.

– The hydroelectric potentials are reserved for this tender, both in the municipal plan and in the Self-Government, and they cannot therefore be utilized by others. A public timetable has been set for the tender, where we expect to hold prequalification from mid-2026 to early 2027.

– The prequalified companies will then have a few years (seasons) to carry out the necessary preliminary studies in the area before the final tender is held. We currently expect that the full process will be completed in 2028.

Hydropower plant and energy use

The company that wins the self-government tender will receive an exploitation permit that gives the right to exploit this specific potential, i.e. the winning company must not only build a hydropower plant, but also describe how the energy that is created will be used. This is called an off-take project (a consumer of the energy). Here, it is currently completely open whether the person who wants to bid for the project will use the energy for a data center, power-to-x plant or something completely different.

– It will be important for the self-government that society gets a fair share of the overall project and therefore the tender materials will of course also reflect this. The tender will include a number of evaluation criteria that ensure that the companies compete on equal terms. The criteria are intended to ensure that we choose the project that provides the most value for Greenland, says Naaja H. Nathanielsen.

Long prospects and no quick solutions

But even after the tender process is completed in 2028 and a winning project has been found, it will take some time for further preliminary studies and more detailed planning of the project for those who win the tender, the ministry says.

During this period, land allocations must be applied for and an EIA report must also be prepared, describing the project's impact on the environment. The report must ultimately be approved by the Greenland Government.

The Ministry further states that if a company needs to establish submarine cables in connection with its project, a permit for seabed surveys must be applied for from the Geodata Agency under the Danish Maritime Authority.

– There are no simple or quick solutions to establish a data center somewhere in the country as early as next year. Although Tusass already has two submarine cables with sufficient capacity to support the establishment of data centers, according to the Ministry of Industry, the data center must be established in a submarine cable city – i.e. Aasiaat, Sisimiut, Maniitsoq, Nuuk or Qaqortoq, and that approval from the relevant authorities is available.

Revenue to the country

Regarding potential revenues to Greenland as a result of a hydropower project and a possible data center, the department explains that they have only described revenues from the hydropower resource, and that revenues from, for example, a data center will require a closer examination of the project in question.

– As part of the tender, an industry agreement and an Impact Benefit Agreement (IBA), which are familiar from raw material projects, must be concluded. What exactly they must contain, of course, depends on the type of customer project and will therefore be a negotiation with the winning bidder, says Naaja H. Nathanielsen, who, however, generally expects that a data center in the operating phase will be able to contribute to society with income via payment for the actual use of the area, purchase of electricity, corporate tax and derived jobs.

- In the establishment phase, there will be a significantly greater activity, which will lead to earnings via income taxes from construction employees and general increased activity in society, among other things via the purchase of various services, says Naaja H. Nathanielsen, and clarifies that there is nothing to prevent American investments from being made in the country, but that they must of course follow the rules and frameworks that apply to everyone else.

Sermitsiaq has tried in vain to get Svend Hardenberg to talk about the project, but he has not wanted to be interviewed at this time.