TikTok has announced plans to invest 1 billion euros to construct a second data centre in Finland, company officials said, accelerating a shift to host European user data on the continent. The new facility will be located in Lahti in southern Finland and is being launched less than a year after the social media group revealed plans for its first Finnish site.
Facility details
The company said the Lahti data centre will begin with an initial capacity of 50 megawatts (MW) and could be expanded to a total capacity of 128 MW. The investment is described by the company as part of its 12 billion-euro European data sovereignty initiative, a programme it characterises as delivering "industry-leading protections for the data of over 200 million European users."
Context and rationale
Finland has become an attractive location for data centre development. Companies including Microsoft and Google have been drawn to the country, citing factors such as a cold climate that reduces cooling costs, low-cost and low-carbon electricity, and a stable regulatory environment inside the European Union. These considerations contribute to efforts by large technology firms to manage energy costs and meet climate-related objectives.
Political reaction to TikTok’s presence
Political concern in Finland surfaced after the plan for TikTok's first data centre in the country was made public in April of the previous year. While Finland's defence ministry approved that initial investment in 2024, some politicians said they had not been informed and voiced security worries. Wille Rydman, who served as the minister of economic affairs at the time, urged that the project be "reconsidered" because of perceived security risks and a lack of transparency 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," Rydman said, addressing the local property developer involved with the project.
Current data arrangement and timeline
TikTok stated that its European user data is at present stored with enhanced safeguards across three data centres in Norway, Ireland, and the United States. The company's first Finnish data centre, located in Kouvola, is expected to be operational by the end of this year. The Lahti facility is scheduled to come online by 2027.
Local response
The mayor of Lahti welcomed the decision. In a statement, Mayor Niko Kyynarainen said the investment was substantial for the city, noting that a main tenant agreement has been signed and that the project is advancing as planned.
Broader backdrop
The announcement arrives amid heightened scrutiny of social media platforms across Europe, including increased political pressure to shield children from addictive algorithms. It also follows developments earlier in the year in which ByteDance, TikTok's parent company, avoided a U.S. ban over data protection concerns in January. The company framed the Finnish investment as a continuation of its efforts to move European user data to facilities located within Europe.
Currency reference
The company provided the investment figure in euros. For reference, $1 equals 0.8654 euros.