The leader of Borlänge council, Sweden, fears the departure of battery manufacturer Northvolt could lead to a planned 89-hectare CAM manufacturing site being turned into a data centre site that will do little to help his municipality develop economically or industrially.
Cllr Erik Nises said he was called by Northvolt CEO Peter Carlsson on 17 June to say plans for the new plant had been cancelled by the board. Production was due to have started in 2024 with the creation of up to 1,000 jobs and output up to 100GWh.
Nises told BEST the Kvarnsveden site was a “jewel in the crown” for Swedish industry due to the ready availability of high power for manufacturing (direct grid link), a railway connection, skilled workforce and clean water. It had previously been occupied by a paper mill operated by Swedish blue chip company Stora Enso.
Nises said Stora Enso went out of its way to sell the site, which it no longer needed, to Northvolt. The battery maker wanted CAM production using only green energy.
The sale was on favourable terms, with higher bids turned down in favour of Northvolt’s plan, he said. The council also assisted with the process. Nises said Stora Enso wanted an outcome that favoured the local community.
Nises said: “My fear is a data centre business will get hold of the whole site…It’s so rare for a small municipality to have this. We’re geographically very small and have run out of industrial land. This site would provide great development potential for Borlänge and great opportunities for growing companies. And it would be a waste of such a resource.” Datacentres do not create many jobs, he said. Borlänge has a population of around 52,000.
Nises said he had been involved in monthly meetings with Northvolt over its plans to build a CAM manufacturing facility. Initially, everyone was very positive about Northvolt, he said. “The company was well funded with big investors, so I don’t blame Stora Enso for selling it to Northvolt.”
But the meetings stopped and eventually Nises received a call from Carlsson that the board had changed its mind and decided to sell completely, after earlier talking about selling part of it to raise cash.
“If you were to ask local people if they believe in the green transition, many would now say no,” Nises said. He worries Northvolt will “cheat” the municipality by selling to the highest bidder regardless of local interests, including jobs, and by engaging in speculation in industrial property.
Despite promises, Nises has heard nothing further from Carlsson or Northvolt. He has though heard from another company looking to buy the site. This contact made Nises believe a data centre is planned. Northvolt may have a legal right to do what they want, Nises said, “but no moral right.”
Nothvolt’s Director of Communication and Public Affairs Nordics, Matti Kataja, told BEST in a statement: “We are currently carrying out a large-scale expansion in Sweden, Germany and Canada, based on demand from our customers and investors.
“At the same time, a strategic review is being carried out regarding Kvarnsveden, and we are having a discussion with several stakeholders, including the municipality, about the site’s future.
“However, that discussion is still ongoing, and we will get back with more comments when a decision has been made.”
