Finland has launched 60 data centre projects this year

Finland has seen 60 data centre projects get underway this year, more than one a week, Yle reports. The Confederation of Finnish Industries (EK) has recorded 145 projects in total, and says the pace of announcements shows no sign of slowing.

EK’s figures were updated on September 15. Since then, the municipalities of Simo and Veteli have also made zoning decisions for data centres. More than 50 projects were launched last year, compared with just seven planned before 2024. Yle’s map shows the municipalities where projects have been announced, not their precise locations.

EK’s leading expert on green growth, Janne Peljo, says Finland’s size and low population density mean there is room for data centres as well as new electricity generation and transmission infrastructure. He says potential constraints in the coming years include Finland’s international competitiveness, grid capacity, the availability of zoned land that can be connected to the grid quickly, and local economic factors.

Companies appear to be prioritising access to electricity and suitable land, seeking locations that can accommodate an initial facility and possible expansion, along with the necessary power connections. Peljo says this can mean weighing up better-zoned land closer to southern Finland’s more densely populated areas against possible grid congestion in cities. New projects further north reflect that trade-off, he says.

Some large projects are planned in Helsinki, Lappeenranta and Vaasa, but Peljo expects the biggest facilities to continue to be built mostly outside city outskirts. He says construction and the infrastructure needed for electricity generation and transmission affect the natural environment, but argues that data centres can be built sustainably if efforts are made to do so.

The Ministry of Economic Affairs and Employment has circulated a draft amendment to the Electricity Market Act for consultation, following increased congestion on the electricity grid. Under the proposal, grid operators would handle connection offers for electricity consumption sites and energy storage facilities in four priority groups, based on the connection’s capacity and purpose. The proposal would not restrict access to the grid, but would steer high-consumption facilities and storage to areas without grid congestion, often remote locations. The government intends the law to take effect at the beginning of next year.