PRESS RELEASE
The growth of the data center industry requires a lot of electricity, but their actual electricity consumption is significantly lower than what is often reported in the media. At the same time, the electricity demand of data centers supports investments in electricity generation, which are at zero this year due to low electricity prices. According to a published estimate, the employment impact of data centers is approximately 44,000 person-years during the construction phase and just under 10,000 person-years during the operational phase
The number of new data center investments has raised concerns about the adequacy of electricity supply. According to the data center industry, it is important to discuss the state of the electricity market, as its development is also vital to data centers. Electricity production, consumption, and grid capacity must develop in tandem. However, the electricity demand of data centers is not as high as their published nominal power would suggest, nor is their construction so slow that the electricity market and transmission capacity have time to keep pace.
According to a report published last year by Veli-Matti Mattila, data centers consumed approximately 1.6 terawatt-hours of electricity in 2024, or just under two percent of Finland’s total consumption. The report states that data center electricity consumption will grow to 5–6 terawatt-hours by 2030, which would account for about 3–4 percent of total consumption. The Finnish Data Center Association’s own estimate is slightly higher; according to it, the nominal capacity of data centers in Finland would rise from the current approximately 360 megawatts to 1,166 megawatts by the end of the decade, which would correspond to just over six terawatt-hours of electricity consumption.
Public announcements regarding data center investments typically cite nominal capacity once the data center campus in question has been fully constructed. The average utilization rate of data centers is approximately 60% of the built nominal capacity. Data centers are built in phases, and not all approved investments will be fully realized before 2030. Securing an electricity connection, zoning, permitting, earthworks, construction, and gradual commissioning all take time.
The situation in Finland is very different from that in Ireland, for example, where data centers consumed 22% of electricity in 2024. Ireland’s electricity market is about one-third the size of Finland’s, and electricity is expensive due to the high share of natural gas in production, which is subject to emissions trading. In Finland, low-carbon electricity production – i.e., production not subject to emissions trading – accounts for 96%.
“The ability to obtain an electricity connection faster than in comparable countries attracts investment to Finland, and that is only a positive thing,” says Antti Poikola, Executive Director of the Finnish Data Center Association (FDCA). “In Finland, there are many electricity generation projects ready for construction, waiting for demand to materialize. Data centers are stimulating the electricity market, helping to get investments moving there as well”, Poikola continues.
Electricity futures also predict affordable electricity for next year. According to them, monthly average prices during the winter will be slightly over ten cents per kilowatt-hour at their highest. The impact of data centers on electricity price spikes is real, but not as significant as has been portrayed in the media. Even in the most aggressive scenarios, data centers account for only a small portion of total consumption, and their backup power systems can, if necessary, be repurposed for production directed toward the electricity market.
According to Ramboll’s report, the total employment impact of data center projects that have received investment decisions by early fall 2025 would be 44,000 person-years during the construction phase by 2030, and thereafter, on an annual basis, no 9,900 person-years.
“It is physically impossible for data center capacity to be built so quickly that the power grid couldn’t keep up”, Poikola notes. “It is also worth noting that data centers built in Sweden and Norway will have exactly the same impact on the Nordic electricity market, but we will miss out on the tax revenue and jobs.”
For more information:
Antti ‘Jogi’ Poikola, Executive Director, Finnish Data Center Association ry
+358 44 337 5439
antti.poikola@fdca.fi
https://www.fdca.fi
A summary of the 9/2025 data center market study can be found here.
The Finnish Data Center Association (FDCA) represents over 250 companies in the Finnish data center industry, ranging from data center operators and system suppliers to consultants, regional development companies, training providers, and design and construction professionals. Our activities are always guided by Finland’s long-term interests.