Krauma Thermal Baths are in West Iceland, near the town of Reykholt. Note that there are 2 towns named Reykholt in Iceland: the other one is in the South of Iceland, in the Golden Circle area. Krauma opened at the end of 2016, the first in a trio of new premium thermal baths. GeoSea in North Iceland opened in 2018, and Vök Baths in East Iceland opened in 2019.
All of these feature hot outdoor pools heated by nearby geothermally heated water, and Krauma makes sure you know this the moment you step out of your car. It’s located right next to the Deildartunguhver geothermal area, and its clouds of hit sulphuric steam. Deildartunguhver is Europe’s most powerful hot spring. (That’s defined by total flow rate.)