Data centres drive construction jobs boom in Kymenlaakso

Construction companies in Finland’s Kymenlaakso region are seeing a sharp increase in work, driven especially by several data centre projects in Kouvola, Yle reports. Job advertisements in the construction sector have increased for the second consecutive month.

Workers are particularly in demand in Kouvola, including construction assistants, house builders and carpenters.

Arto Nurminen, chief executive of the Kouvola-based company Utin rakennus, said the situation was exceptionally strong for his firm.

“We have more work than ever before,” Nurminen said.

The company has hired five new employees in recent weeks. According to Nurminen, about 20 new subcontractors have also joined its projects.

Utin rakennus has benefited from securing large projects for a major client whose name the company cannot disclose for contractual reasons.

Data centre projects fuel demand

Several data centres are being built near former factories in Kuusankoski, Koria and Ummelijoki, all in Kouvola. Construction work on a data centre also began in Lappeenranta in July.

Jussi Sakari, an expert at Rakennusliitto, a construction-sector union, said the data centre projects were the single biggest factor behind the improved employment situation in Kymenlaakso’s construction industry.

According to Sakari, Kymenlaakso stands out from the rest of Finland because of the number of data centres under construction. He said he could not recall a comparable situation in recent years in which one industrial sector had created a local construction boom.

“Recent booms in Finland have been linked to residential construction, before it hit a wall. In Ostrobothnia, for example, investments are continuously being made in various industrial sectors,” Sakari said.

Construction also recovering in South Karelia

Construction in South Karelia has also begun to recover, according to Rakennusliitto. In Lappeenranta, work started in July on a data centre in the Pajarila industrial area along Highway 6.

The closure of Finland’s eastern border in November 2023 and its effects on construction had raised concerns in the region.

“New industry has now been invested in the region, and it is gradually becoming visible,” Sakari said.

He said construction was also showing signs of recovery elsewhere in Finland. Residential construction, however, continued to lag behind.

Schools, roads and public facilities under construction

Several other large construction projects are also under way in Kymenlaakso. The City of Kouvola is building a theatre, swimming hall, school, multi-purpose arena and day-care centre in the city centre. Their combined budget is about 122 million euros.

The region also has two major road renovation projects. Hyväntuulentie in Kotka is being renovated at a cost of 11 million euros.

On Highway 15 between Kotka and Kouvola, a 122-million-euro construction package has begun. The work includes building new road alignments and passing lanes.

Work is not reaching every company

Not all construction companies in Kouvola are in as strong a position as Utin rakennus. Work is more readily available in the Kouvola area than before, but companies have not yet been able to relax. Some projects have gone to companies from neighbouring cities, where fewer construction projects are under way.

Jani Reijola, chief executive of Rakennus Talox, said the company’s last employees returned from temporary lay-offs this month. The firm has a reasonable amount of renovation work.

The situation is also reasonable at Rakennusliike PK insinööritoimisto, which employs several temporary agency workers in addition to its own staff.

“The darkest period is over,” said chief executive Juha Laitinen.

The winter will be decisive because new construction sites are generally not put out to tender during the coldest part of the season. By then, the work must already have been agreed.