Author: Satish Bonthu (University of Iceland) - The European Union’s ambitions to lead in artificial intelligence and high-performance computing have sparked an unprecedented demand for sustainable, low-latency digital infrastructure. Iceland has been swiftly elevated as a model host for this transformation, offering 100% renewable energy, natural cooling, and political stability—elements that collectively construct a powerful green narrative.
This paper challenges that narrative. While acknowledging Iceland’s natural advantages, we argue that the prevailing discourse obscures serious environmental and socioeconomic consequences. Through a structured gap analysis of promotional claims versus actual impacts—ranging from unregulated energy consumption and marine ecosystem disruption to inequitable resource allocation and limited public oversight—we reveal a widening disconnect between perception and reality.
Using empirical data, industry reports, and case study analysis, we call for a shift toward conscious digital infrastructure planning. We propose a balanced governance framework rooted in sustainability, public equity, and ecological justice—essential for ensuring that Iceland’s digital future is not only green in image, but fair and regenerative in practice.