TikTok is reportedly planning to build another €1 billion data centre in Finland, less than one year after announcing its first.
First reported by Reuters, TikTok said the project will be built in Lahti, in southern Finland, and start with 50MW of capacity. It added that there was potential to scale to 128MW, with the investment forming part of its €12 billion ‘Project Clover’ data sovereignty initiative in Europe.
“In the context of Lahti, the investment is substantial,” commented Mayor of Lahti, Niko Kyynarainen, via a statement. “We are pleased that a main tenant agreement has been signed and that the project is progressing as planned.”
Addressing data security concerns
TikTok’s move comes after the social media company and its parent company, ByteDance, avoided a security-driven ban in the US. Likewise, across Europe, governments are examining the impact of social media, with some even considering bans for children.
Last year, the European Commission and multiple national governments implemented restrictions on the application’s use on staff devices, citing potential data security vulnerabilities. TikTok called these bans “misguided” at the time, describing its European data storage as a “dedicated European data enclave” that spans multiple countries.
It comes after its first data centre in Finland, located in Kouvola, which is also part of its €12 billion pledge to European infrastructure over the next decade and is expected to begin operating by the end of 2026. The Lahti facility is scheduled to be completed in 2027.
Turbocharging Nordic growth
Finland has become a strong hub for data centre development in recent years, with big industry players like Google, Microsoft, Nebius and Equinix investing heavily into projects there. It remains attractive to operators for its cool climate, stable energy grid and 100% renewable energy availability.
Last year, the country sparked debate over its decision to abolish electricity tax breaks for data centres, shifting them to a lower rate, during a time where the industry is advancing AI gigafactory construction. A year on, however, and the market has retained significant interest.
Where TikTok is concerned, some Finnish politicians criticised its first data centre because they were reportedly not informed about the project in advance.
According to Reuters, Finland’s then-minister of economic affairs, Wille Rydman, called for the project to be reconsidered due to security concerns and a lack of openness around the company’s plans.
“At the very least, I would hope that this property development company would reconsider once more whether it really wants TikTok as its tenant,” he told Finland’s public broadcaster Yle, referring to TikTok’s local partner.
To mitigate concerns, TikTok said it implemented a comprehensive system last year that aimed to ensure unparalleled protection for European user data and privacy, while enabling secure global data flows and innovation.
Its Kouvola site is part of the European data enclave, which is overseen by an independent entity, cybersecurity leader NCC Group.
“These systems are designed to go beyond regulatory expectations, ensuring the integrity and privacy of our community’s data,” TikTok said at the time.
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