TikTok plans to invest 1 billion euros ($1.16 billion) to build a second data centre in Finland, less than a year after announcing its first, as part of its push to store European user data on the continent.
The new facility, located in Lahti in southern Finland, will have an initial capacity of 50 megawatts (MW) and a total potential capacity of 128 MW. The investment is part of TikTok’s €12 billion European data sovereignty initiative, aimed at delivering industry-leading protections for the data of over 200 million European users, the company told Reuters.
TikTok’s move comes as the Chinese parent company ByteDance avoided a U.S. ban earlier this year over data protection concerns, and European nations intensify regulatory pressure on social media platforms to safeguard children from addictive algorithms.
Finland has emerged as a preferred location for data centres due to its cold climate, low-cost and low-carbon electricity, and a stable regulatory environment within the European Union. Companies such as Microsoft and Google have similarly invested in Finnish facilities to curb energy costs and meet climate goals.
However, Finnish politicians expressed concerns about TikTok’s first Finnish data centre in Kouvola after it was revealed in April last year. While the Finnish Defence Ministry approved the investment in 2024, there was criticism over a lack of transparency. Finland’s former Minister of Economic Affairs, Wille Rydman, urged a “reconsideration” of the project, citing security concerns.
TikTok said its European user data is currently stored with enhanced safeguards across three data centres in Norway, Ireland, and the U.S. The Kouvola facility is scheduled to be operational by the end of this year, with the Lahti centre expected to be completed by 2027.
Lahti Mayor Niko Kyynarainen welcomed the investment, describing it as substantial for the city. “We are pleased that a main tenant agreement has been signed and that the project is progressing as planned,” he said.
The new data centre represents a major step in TikTok’s European expansion and a continued focus on data sovereignty, security, and compliance with regional regulations.
