Linked to the dragon ruled era would be the most obvious answer. It makes ancient nord armor, draugr weapons and is reawakened by souls.
I could see dragon priests sacrificing servants upon dragonfire forges to empower words of kyne (thu'um) enchantments - thus a
skyforge.
The thu'um enchantment would wake up once it has been charged. Although I do not know in all high hell this enchantment's effect would have.
Maybe it installs memories to the blacksmith who's using the forge? a journal of memories which subconciously tells the secret of making their armour?
Well at least it'd be a convenient way of getting a large order of armour done with a bunch of untrained novices in smithing.
So yes by all this I mean it was built by the nords who worshipped dragons and was heated by dragon fire.
And eh this is just some speculation to throw down this way, eh.