Inside TikTok's $1.1bn Plan for a Second Finnish Data Centre

What happens when megawatt-level data centre construction plans face data security concerns?

According to Reuters, TikTok is planning a €1bn ($1.1bn) data centre in Lahti, Finland – the second Finnish facility TikTok has announced this year – as it builds out its European infrastructure.

However, the move is drawing some concern from Finnish policymakers over data protection and transparency, following strong criticism of TikTok’s first data centre project in the country.

The Lahti facility plans form part of TikTok's €12bn ($14bn) initiative to store European user data within the region, aligning with data sovereignty requirements and tightening regulatory expectations.

It is expected to deliver an initial capacity of 50MW, with potential to scale to 128MW when fully operational in 2027.

TikTok also told Reuters its Kouvola data centre is set to become operational by the end of the year.

Finland’s appeal for hyperscale builds

Finland is known to attract large-scale data centre investment from global technology firms, including Microsoft and Google.

This is because the country offers a combination of access to low-carbon energy and natural cooling from the Finnish climate which would reduce electricity costs, factors that directly affect operating efficiency.

For TikTok, planning builds within the European Union also supports compliance with regional data handling requirements. The company stated it is working to move storage of European user data onto the continent.

TikTok currently stores European user data across three data centres with enhanced safeguards in Norway, Ireland and the US.

Scrutiny over security and transparency

Despite the infrastructure benefits, TikTok’s data centre expansion in Finland has drawn political scrutiny. According to Reuters, concerns emerged around transparency and national security linked to the company’s first site in Kouvola.

Finland’s then-minister of economic affairs, Wille Rydman, called for the project to be reassessed, citing a lack of clarity around TikTok’s plans and broader security considerations tied to its ownership.

"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 told Finland's public broadcaster Yle, referring to TikTok's local partner.

These concerns sit within a wider context of regulatory pressure on social media platforms.

TikTok’s parent company ByteDance avoided a US ban in January linked to data protection issues, and European policymakers are increasing their focus on how platforms handle user data and protect younger audiences from social media addiction.

Capacity, impact and local response

The Lahti project reflects the scale of modern hyperscale data centre development. However, such developments often raise questions around energy consumption and local economic impact.

Commenting online, Rizwan Abbas, a former Manager of Supply Chain at Ali Akbar Group, highlighted the balance between infrastructure gains and broader impacts.

He said: "Overall, the project reflects a trade-off: strong digital infrastructure gains vs. relatively low job creation and growing energy pressure."

Local authorities in Lahti present a more positive view, focusing on investment and development, with support from the mayor.

"In the context of Lahti, the investment is substantial. We are pleased that a main tenant agreement has been signed and that the project is progressing as planned," Lahti Mayor Niko Kyynarainen said in a statement to Reuters.

TikTok’s continued buildout in Finland positions the country as a key node in its European data centre strategy, combining capacity expansion with regional data storage as regulatory expectations evolve.