Kokkola turns down data centers to focus on heavy industry

The city of Kokkola in western Finland has consciously refused to host data centers, choosing instead to direct its resources toward heavy industry, Finnish broadcaster Yle reported. While many municipalities compete for data centers, Kokkola’s development director Jonne Sandberg said the city’s strengths—electricity, a port, rail links, and circular economy—are better used by industrial plants that generate more export revenue and jobs.

During one week in April, three companies expressed interest in building a data center in Kokkola, but the city turned them down. Sandberg said saying no never gets easier, but the decision is unanimous. City manager Stina Mattila confirmed there has been no disagreement in the decision-making process.

Kokkola already hosts billions of euros in industrial projects planned for the 2020s, including the Arctial aluminium plant. Sandberg argued that a data center would be a “torso” for the city, wasting electricity and infrastructure while providing fewer benefits. He said municipalities should specialise in their own strengths rather than chasing every type of investment.

LUT University industry professor Jukka Ruusunen praised Sandberg’s approach, saying he could advise the Finnish government on strategy. Sandberg quipped that the government would not listen.

Kokkola now receives most inquiries from companies directly, without needing to recruit them. Only about two of ten projects succeed. Failed examples include Flexens’ hydrogen plant, Vanadis Fuels’ e-methanol plant with Total, and Plug Power’s ammonia and hydrogen plant, though Plug Power remains interested and is reconceptualising its project. Sandberg said land is limited and that the city must consider environmental carrying capacity.

Tags: Finland, data centers, heavy industry