TikTok to invest 1 billion euro in its first data-center in Finland
The company aims to strengthen its presence in Europe amid regulatory pressure and consolidate its digital sovereignty strategy through proprietary infrastructure.
According to exclusive information from Reuters, TikTok plans to build its first data centre in Finland with an estimated investment of €1 billion, as part of its strategy to store European user data within the continent.
The initiative is part of its data security program, Project Clover, launched in 2023, which includes plans to invest €12 billion in technology infrastructure over the next 10 years.
The information was also confirmed by a company spokesperson via email to Helsingin Sanomat: "We are investing €1 billion in a new data centre in Finland as part of Project Clover, an initiative to enhance security across Europe."
The new data centre would join existing facilities in Norway and Ireland, and aims to further reinforce TikTok’s position in Europe, where it already has over 175 million users.
Follow us on: 
Digital Sovereignty and Regulatory Pressure
The decision comes in response to increasing regulatory scrutiny. In recent years, institutions such as the European Parliament, the European Commission, and several national governments have banned the use of TikTok on official devices, citing concerns over data privacy and potential access by the Chinese government.
In the United States, tensions have escalated to the point of a potential nationwide ban unless the company separates its U.S. operations from ByteDance, its China-based parent company. In response, TikTok has called these actions "unfounded" and based on "fundamental misunderstandings," as stated on its website.
Finland: The New Digital Infrastructure Hub
Nordic countries have become attractive destinations for data centres by major tech firms, from Microsoft to Meta, thanks to colder climates that reduce cooling costs, as well as the availability of cheap, emission-free electricity.
In this context, Microsoft President Brad Smith highlighted last week: "Finland is definitely one of the places where we’re continuing to build out our infrastructure."
He added: "First, we have strong access to carbon-free energy, and second, it has great connectivity, which allows us to serve much of Europe from Finland."
According to the Finnish Data Centre Association, there are currently more than 20 new data centre projects under development in the country, with a combined estimated value of €13 billion and a capacity of 1.3 gigawatts.
It’s also worth noting that in May 2024, Google announced a €1 billion expansion of its Hamina data centre in southern Finland, aiming to drive job creation, innovation, and economic activity in the region.
With information from Reuters, HS & Business Finland