Functional electricity infrastructure is the key to attracting investments to Finland

The need for data centre capacity has increased significantly in recent years, and the breakthrough of digitalisation and creative artificial intelligence will further accelerate this development. Several data centres are in the pipeline in Finland and there is demand for more – as long as the investment is worthwhile and sufficient energy infrastructure is ensured.

Finland is an attractive location for a data centre: the telecommunications infrastructure is well developed, the security situation is stable, energy availability is good and energy prices are moderate. The level of transfer tax is also reasonable. The cool climate suits the requirements of data centres as there is less need for separate cooling. Heat recovery can also bring added value.

We need to work on our infrastructure and other areas systematically and with a long-term view to bring in data centre investments to Finland. Industry operators must ensure sufficient electricity production and transfer for the needs of data centres so that investors will decide to build their centre in Finland.

Building new energy infrastructure now can make Finland more attractive for investment in future. Although the Government proposes a maximum of EUR 150 million tax credit to projects promoting green transition, changes to the electricity grid regulation model compromise progress. Finland should decide in which direction it wants to row its boat. The conditions for building and investing in new infrastructure must be maintained and preferably strengthened.

As digitalisation has progressed, hyperscaler companies, such as Google, Microsoft and Meta, have grown and prospered, creating a fundamental demand for data centres. Finland and other Nordic countries are competing to attract industrial investments and data centres: which country will have the advantage at this critical time?