UPM in talks to convert Lappeenranta paper machine hall into data center

UPM is negotiating with multiple data center operators to repurpose the empty paper machine hall at its Kaukas plant in Lappeenranta, the company’s property director Hannu Havanka confirmed to Yle.

The Finnish forest industry giant halted paper production at the site last year, and the final machine is now being dismantled. Havanka said the space will be fully vacated by the end of 2026.

He declined to name potential operators but noted strong interest from the sector, with direct inquiries from data center firms once the availability of the space became known.

The plant’s location on an already zoned industrial area is a key advantage, as it eliminates the need for rezoning and accelerates the process, Havanka said. Lappeenranta’s building supervision confirmed that converting the hall for data center use would require a construction permit.

Two meetings have been held so far, the first three months ago to outline the space and the second two weeks ago to discuss energy infrastructure, according to Sampo Sälevaara, head of building supervision. He said the project has progressed beyond initial intentions, though no formal application has been submitted.

Havanka stated that the future data center operator, not UPM, would likely apply for the necessary permits. He added that UPM has extensive experience repurposing closed paper mills, having developed methods to attract new operators to former sites.

The company is currently only in talks with data center operators, not other industries. Havanka would not estimate a timeline for reaching an agreement but said construction would take at least a year before any data center could become operational.

Whether UPM will lease or sell the space remains under negotiation. The dismantling of the paper machines will continue through the summer, with the facility expected to be empty by year’s end.