Data centre projects expand as criticism over power use grows

Data centre construction is continuing to accelerate in Finland despite growing criticism over their electricity consumption, Yle reports. Municipal leaders say the projects bring jobs and tax revenue, while questions about possible effects on electricity prices are not considered the municipalities’ responsibility.

Lahti is currently building a data centre for TikTok, and construction of what is planned to become Finland’s largest data centre is beginning in Forssa. Lahti has also announced plans for a second data centre.

Data centres contain large numbers of computers used to store and process online data. They consume substantial amounts of energy both to run the computers and to cool the buildings. The growth of artificial intelligence is increasing demand for data centres.

Municipalities control much of the permitting process because they decide on zoning and building permits. Yle asked the leaders of three municipalities how they are addressing public concerns, including pressure for electricity prices to rise.

Transmission system operator Fingrid said in mid August that electricity consumption in Finland is expected to begin rising sharply. Data centre and electric boiler projects are among the main drivers of the increase.

Fingrid estimates that if the projects are completed in full, they could increase electricity consumption by almost 40 per cent over the next five years. Jussi Jyrinsalo, Fingrid’s director responsible for network planning, told Helsingin Sanomat that electricity prices could rise if a large share of the planned data centre projects goes ahead.

Forssa Mayor Jari Kesäniemi said he does not believe the project will have any effect on electricity prices. He added that Fingrid has assured the city that there will be enough electricity for the giant data centre project.

Lahti Mayor Niko Kyynäräinen said he understood residents’ concerns about electricity availability and price fluctuations, but noted that the issue was not in the city’s hands.

Lahti Energia estimates that the data centre currently under construction in the city will double Lahti’s electricity consumption.

Samuli Honkapuro, a professor of energy markets and energy systems at LUT University, said Finland had built enough wind and solar power to provide substantial additional fossil free electricity for data centres.

“From the perspective of energy production, there is no challenge, but the key question is how flexible data centre loads are in possible situations of electricity scarcity,” Honkapuro said.

He said data centres could shift computing capacity to centres in other countries when electricity availability is poor or prices are too high. Flexible capacity could also be brought to the electricity market, potentially turning data centres from a problem into a solution during shortages.

Honkapuro added that data centres do not immediately use their maximum capacity after construction is completed, and may never reach their full planned output.

The data centre planned for Forssa, in a forested landscape in the Kanta Häme region crossed by power lines, could consume as much as about 8 per cent of all electricity used in Finland if built to its full scale.

Kesäniemi described the Forssa project as a major opportunity for the city, the surrounding region, the region of Kanta Häme and Finland as a whole. He also said data centres automatically bring green transition projects with them.