Data centre construction has surged into a global wave of investments. With the rise of artificial intelligence and cloud services alongside the ever-growing volume of global data, demand for capacity is increasing faster than ever. In Finland, this trend has taken shape through new construction plans, with propositions for new data centres all around the country. But what advantages does Finland bring to the table as a data centre location in the global market?
Having worked at DNA since 2015, Vice President of Wholesale Juho Hyvärinen has witnessed the development of telecommunications, energy production, and data requirements from near and far. According to Hyvärinen, when it comes to data centres, the market is booming.
Although not every project currently on the drawing board will come to fruition, there is significant investment appetite and enthusiasm, especially in international markets. Proposed regions tend to welcome data centre plans with open arms, as their economic impact is substantial.
“Generally, a data centre will have a major impact on a region’s well-being. It brings tax revenue, employment, and a vast number of collaboration opportunities for local businesses and educational institutions. That’s already three significant upsides,” Hyvärinen states.
In recent years, locations for new data centre plans have increasingly stretched outside of the Helsinki metropolitan area. The focus was previously much more southbound, but development plans have since become more geographically dispersed. Reliable telecommunications connections play a significant role in investment decisions, but according to Hyvärinen, electricity is another key factor:
“Energy must be competitively priced and consistently available from multiple sources. In this respect, we in the Nordics are in a fairly unbeatable position.”
The power consumption of data centres understandably raises concerns. However, Finland boasts the greenest electricity production in the EU: more than 87% of Finnish electricity was generated carbon-neutrally in 2023. Affordable, reliable, and low-carbon electricity production increases Finland’s attractiveness in international markets.
A data centre in Finland benefits from the entire Nordic region
A key advantage of data centres planned in Finland is the close-knit, cross-border cooperation between Nordic countries. This is part and parcel of DNA’s everyday operations under the umbrella of Telenor Group. Hyvärinen goes on to note that Finland should in fact not be viewed as an isolated area, but as part of a broader Nordic entity.
“The Nordics collectively offer tremendous advantages for data centres. The cold climate provides natural cooling capabilities, the operating environment is relatively stable and predictable despite global unrest, and we have a high level of education and top-tier expertise. Finland works closely with other Nordic countries, which is another added benefit for data centres,” Hyvärinen continues.
Finland and the Nordic region also offer extensive and easily upgradeable telecommunications connections. Hyvärinen notes that DNA and Telenor are well equipped to respond to both growing data traffic demands and possible extraordinary situations. Data flows through submerged cables alongside a wide core network, with data pathways able to complement and support each other if necessary.
Ensuring reliability in data centre connectivity is critical. Large data centres typically require at least three separate routes from the facility to international networks. DNA can offer flexible support in telecommunications and, when needed, provide fully tailor-made connection solutions for data centres. As the need for capacity will only rise with large data centres and AI, the core network will be developed further to meet growing demands.
The future of data centres
The future of data centres in Finland depends on numerous global factors. Many construction projects are still under development, and the continuity of investment cycles depends on areas such as the evolution of artificial intelligence, cloud services, and other data-critical technologies in the coming years. Energy markets also play a key role in determining where new data centres will ultimately be located.
“However, the direction seems clear to me. In five years, Finland will have significantly more data centres, and in ten years, even more,” Hyvärinen adds.
Growth also brings new requirements: Finland needs more international connections and strengthening of the domestic core network. Increasing demands must be met.
“This is where the strengths of DNA and Telenor really stand out. We have the capability to serve customers across the entire Nordic region. We can seamlessly connect Finland, Sweden, and Norway and ensure connectivity between all countries. So, wherever a new data centre is built in the Nordics, we are in a prime position to support the project in terms of telecommunications,” Hyvärinen concludes.
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