The data center industry is Finland’s fastest-growing industrial sector and an important driver of economic growth. Investments are made in Finland entirely on market terms, without any subsidies. Data centers also pay the same price for electricity as other electricity consumers, and as major customers of grid operators, they make a significant contribution to the development of Finland’s electricity networks.
The government has now withdrawn its planned support scheme for data centers that provide waste heat for district heating systems. The support mechanism was intended to partially compensate for the tax change that came into force at the beginning of July, which moved data centers into a higher electricity tax category than other industrial sectors.
Although the increase in electricity taxation has not halted data center investments, repeated and completely unpredictable policy decisions and legislative initiatives are rapidly undermining Finland’s reputation as a reliable investment environment. This autumn alone, Parliament will consider several legislative initiatives affecting data centers, many of which were unheard of as recently as May. Such surprises and policy inconsistency damage Finland’s reputation not only for data center investments but for all forms of investment.
“A single policy change is not the issue. The problem is the constant stream of unpredictable changes, which erodes confidence in Finland as an investment destination,” says Antti Poikola, Managing Director of the Finnish Data Center Association. “Finnish policymaking is currently contradictory. At the same time as we lament the lack of economic growth, we seem to be competing to invent new obstacles to the very growth that data centers are helping to create.”
Nearly twenty data centers are currently under construction in Finland. At present, data centers account for approximately two to three percent of the country’s electricity consumption. This figure is expected to rise to seven percent within the next five years. The construction and technology sectors have already benefited from the growth driven by data center development. Once operational, the value chains surrounding data centers create permanent jobs for highly skilled professionals.
For further information:
Antti “Jogi” Poikola
Managing Director
+358 44 337 5439
antti.poikola@fdca.fi
Finnish Data Center Association
The Finnish Data Center Association (FDCA) represents more than 300 companies, ranging from data center operators and system suppliers to consultants, regional development agencies, education providers, and professionals in design and construction. Our activities are always guided by Finland’s long-term national interest.