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Iceland’s national power company Landsvirkjun has committed to powering 1% of the European data center industry with renewable energy, generated by hydro-electric and geothermal plants, by 2020, the company said Tuesday.

That is about 1.5 terawatt-hours, or 10% of Landsvirkjun’s total current generation capacity. The company believes the goal is achievable because of Iceland’s ample development opportunities for renewable power and strong investment by the data center industry the country has been enjoying recently.

Magnus Bjarnason, executive VP of marketing and business development at the power company, said Iceland had the “most competitive” power prices in Europe and offered commitments to long-term power-purchase contracts.

“This makes it particularly attractive for international sustainable business development, especially in sectors such as datacenters where value is attached with being green and secure,” he said.

Landsvirkjun has recently quoted a fixed rate of US$43 per MWh for a 12-year contract, the company said. Real market rates in Europe as a whole started at $65 per MWh on average in 2011 on short-term contracts, according to Landsvirkjun.

Data centers operating in Iceland include Verne Global’s modular data center built by Colt and Skyrr-owned Thor Data Center.

Iceland is competing with neighboring Sweden for data center investment. Sweden has already attracted several high-profile data center builds (most recently Facebook) and its economic-development officials are aggressively recruiting others.