Data centers are quickly becoming one of the key pillars of Finland’s future prosperity and energy transformation. This message was strongly echoed at the SuomiAreena panel discussion “Energy Hog or Smart Solution? The Role of Data Centers in the Energy Transition,” where experts emphasized the critical role of data infrastructure in both the energy system and society’s digital development.
Data centers are the backbone of the digital society
Without data centers, we wouldn’t have online banking, mobile payments, social media, or AI services – they enable nearly every aspect of our digital daily life. As FDCA Chairman Veijo Terho reminded, even though we often refer to the “cloud,” our data doesn’t float in the air – it’s stored in physical facilities called data centers.
A climate-friendly investment and an opportunity for Finnish municipalities
Finland is known for its clean, reliable, and competitively priced electricity, especially wind power. According to Jukka Leskelä, CEO of Finnish Energy, Finland is one of the most attractive destinations for data centers in Europe: “We have Europe’s most affordable and low-emission electricity, excellent grid stability, and rapidly growing renewable capacity.”
One common misconception is that data centers consume electricity at the expense of others or increase prices. Annukka Saari, Director of Energy and Climate at Technology Industries of Finland, clarified: “Data centers often sign long-term power purchase agreements and help finance new renewable capacity like wind power. They don’t burden the system – they strengthen it and can even help lower average electricity prices.”
In 2024, data centers accounted for only around 2% of Finland’s total electricity consumption. By 2030, this share is expected to rise to about 4%, which is still far less than the 40% consumed by traditional industry.
Circular economy and regional benefits
Data centers are not just “warehouses full of computers” – they are advanced industrial facilities that also produce excess heat. This heat can be repurposed in district heating networks. In Espoo, for instance, data center waste heat is set to replace most of the city’s district heating in the future. This significantly reduces fossil fuel use and supports municipalities in meeting climate targets.
Data centers also create both direct and indirect jobs across Finland, including in areas where traditional industries have declined. Google’s Hamina facility will employ over 500 people after expansion, and Microsoft’s new data center will generate thousands of construction jobs over the course of its 8-year build.
AI increases demand, but also brings efficiency
The rise of AI is increasing the computational load for data centers, but at the same time, huge strides are being made in energy efficiency. AI can boost areas like healthcare diagnostics and industrial R&D.
“It’s clear that the need for data centers will grow with AI, but at the same time, the energy consumption per computation will significantly decrease in the coming years,” Leskelä noted.
Global competition is fierce and Finland must not sit idle
The panel emphasized that data centers don’t “just come to Finland” – attracting them requires winning global competition. Finland now has a window of opportunity, but it must be earned through predictability, long-term policymaking, a pro-investment environment, and a clear national strategy.
The bottom line is clear: Finland should aim for a significant share of future European data center investments. This is not just about technology or energy – it’s about the next leap in national economic growth and societal well-being.
Watch the full panel discussion (in Finnish) on MTV Katsomo!