When the Market Decides: The Creeping Governance Crisis of Critical Infrastructure in Norway’s Datacentre Politics

Abstract

This chapter explores the governance dynamics of critical infrastructure (CI) in Norway. The objective of our study is to detail the intricate interaction between CI and national security, showcasing how governance frameworks address the tension between economic development and security needs. In particular, this research investigates how the involvement of private actors influences governance mechanisms and accountability structures within the CI sector of datacentres. Employing an analysis of policy documents, regulatory frameworks, news  coverage and case studies, the challenges of vertical and horizontal coordination in infrastruc-ture governance are identified. This investigation utilises governance as a prevention framework to examine its potential and limitations in safeguarding CI, drawing upon two case studies from the datacentre industry in Norway. Findings reveal a complex balance between state oversight, local co-management and operator responsibility, particularly in terms of foreign investment in CI. The chapter contributes to the theoretical understanding of the preventive governance framework while providing practical insights into policy development in the protection of CI. These findings have crucial implications for understanding how nations can balance economic development with security imperatives through CI governance amid the increasing international interdependence and evolving security challenges. 

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