The accelerating development of AI and cloud services is driving global demand for new data centres. In many ways, Finland is the ideal hub for this new growth sector: we have a cool climate that reduces cooling requirements and energy consumption. In addition, a stable society, good infrastructure and availability of renewable energy make Finland an attractive location for international technology companies.
Finland’s granite bedrock offers a stable and safe surface for data centre construction, and there is plenty of space for large structures. According to Invest in Finland, another selling point for the country is the greenest electricity generation in the EU, with over 87% carbon-neutral electricity production in 2023. In addition to being green, our electricity grid is also highly reliable and affordable.
Significant efforts have also been made to develop the grid’s capacity and security of supply, which especially benefits large electricity consumers like data centres.
In addition, Finland’s excellent telecommunications infrastructure supports large-scale data processing. DNA, for example, has an extensive core network that connects Finland to many international routes through underground and submarine cables. The Nordic fibre optics network of Telenor Group, DNA’s parent company, already stretches for almost 200,000 kilometres and includes multiple routes out of the Nordics. With the rise of AI, demand for capacity is increasing, which in turn is driving further investment activity. With the addition of new data centres, this network will grow further to meet the significant capacity needs of AI.
It’s clear Finland has a lot to offer data centres, but what do data centres offer us?
Investment and jobs. Data centres have the potential to bring significant investment activity to Finland while creating new skilled jobs. The sector may even bring with it completely new business opportunities.
Renewable energy opportunities. Data centres’ energy demands open the door for significant investments in renewable wind and solar power.
Energy utilisation. The heat generated by data centres can be used in district heating, easing strain on these networks during peak demand.
Extensive network and security of supply. An extensive and redundant network is needed to facilitate data centres’ data transfer needs, which will also serve Finnish companies across the board and improve security of supply.
Ecosystem development. With the construction of data centres and fibre optics connections, Finland will become a future-proof computing hub that can act as a platform for the development of many new solutions. This incentivises the growth of an ecosystem full of diverse development activity around data centres, because placing AI development close to computing power minimises network delay.
Such an ecosystem requires close co-operation between startups, universities and large businesses, along with adequate financing mechanisms to support development efforts. Co-creation and co-operation are essential for new innovation.
Finland’s future success may be driven by even more highly developed solutions, such as 6G networks and AI-based sensor networks. They will facilitate entirely new solutions we cannot even imagine yet. These technologies require immense computing power, delay-free data transfer and scalable infrastructure – exactly the elements that are being put in place right now.
Finland is a global leader in 6G development, and institutions like the University of Oulu are at the forefront of European 6G research. Data centres allow Finland to position itself as a hub for future innovation like this.
If Finland is going to make the most of this opportunity, clear measures and incentives are needed in order to attract investment. These include tax incentives, straightforward approval processes and long-term research funding. Both public and private funding to support infrastructure development will also be needed.
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