The Finnish Data Center Association (FDCA) published a study conducted by VTT, “The Data Center Industry Today: Impacts and Indicators,” at Messukeskus Helsinki on Wednesday, 28 October. The study presents, among other things, updated estimates of data center construction volumes, investment, employment impacts and actual electricity consumption in Finland through 2030.
The data center industry is one of the fastest-growing sectors in Finland, yet there has been no comprehensive overview of its development and impacts. Collecting up-to-date, comprehensive and reliable information about this relatively young industry and its impacts is challenging. For example, the level of public communication about data center projects varies, and the information available is not always sufficiently transparent or comparable.
“Euros, megawatts and electricity consumption are important figures, but on their own they do not tell us what the impacts of the industry’s development mean for Finland as a whole,” says Kirsi Hyytinen, who led the project at VTT.
“From an impact perspective, the most interesting question is what kind of new business, innovation and expertise can develop around data centers in Finland in the coming years. By examining these impacts, the industry’s development can be managed in a way that strengthens the benefits of growth while minimising negative impacts,” Hyytinen continues.
As part of the study, FDCA is also publishing guidelines for good project communications for the data center industry. By following these guidelines, operators can describe the scale and impacts of their projects in an understandable, comprehensive and consistent manner, thereby increasing transparency in the public discussion surrounding data center projects.
To further improve transparency within the industry, FDCA is also publishing a project register alongside the study. The register will provide updated information on projects that have received building permits and are considered the most likely to be implemented by the end of 2030.
“We want to improve the availability of information about data centers to support both public discussion and political decision-making,” says Antti ‘Jogi’ Poikola, Excecutive Director of the Finnish Data Center Association.
“Our work is only beginning; this is the starting point. We also want to be able to produce our own assessments of the industry’s development on a solid factual basis,” Poikola continues.
Growth outlook
The growth of data center capacity has impacts across six key areas: the economy and investment, the labour market, the electricity system, innovation and exports, environmental sustainability, and local communities.
According to the study, Finland’s data center capacity is expected to increase from the current approximately 450 MW to around 2,000–3,400 MW by the end of 2030.
Data centers currently account for approximately 2–3% of Finland’s electricity consumption. Their electricity consumption is estimated to increase to 13–23 TWh, representing approximately 12–19% of Finland’s total electricity consumption, taking into account the expected increase in electricity consumption in other sectors as well.
Data centers are built in phases, and their announced capacity is typically reached over several years. The actual level of investment, employment and electricity consumption will therefore depend on how much of the planned capacity of projects that have received building permits is ultimately built by 2030.
In monetary terms, this would represent investments of approximately EUR 16.5–32 billion. This figure does not include data center IT equipment.
The cumulative employment impact during the construction phase is estimated at 34,000–66,000 person-years, while operating data centers would provide 3,500–6,000 permanent jobs, depending on how much of the planned investment is ultimately realised.
One example examined in the study is a data center with 100 MW of IT capacity. Excluding IT equipment, the investment would amount to approximately EUR 1–1.2 billion, of which Finnish companies would receive approximately EUR 300–480 million, while the state would receive approximately EUR 146 million in tax revenue.
Such a data center would consume approximately 0.68 TWh of electricity per year. Its construction would require approximately 2,000–2,500 person-years of labour over the entire construction period, while its operational-phase employment impact would be approximately 160–200 person-years annually.
“Following the completion of this study, we will continue our work by examining the broader impacts of the data center industry on the economy, innovation and exports, the environment, and communities. The results will be published next year,” says Poikola.
“The impact of the industry is not merely a consequence of its operations, but also one of the conditions for its continued existence. Positive impacts support the industry’s operating environment, while negative impacts weaken its social acceptance and can consequently slow down or restrict future projects.”
Fact box
What is the data center industry?
The data center industry comprises companies that design, build or operate data centers in Finland or provide related products and services.
What are data centers?
Data centers are modern industrial facilities that form the physical foundation of digital infrastructure. Without data centers, virtually no digital services would function.
Data centers also support many services that we may not immediately think of as digital, such as payment systems and traffic management. They meet society’s growing need to process and store information reliably.
People in Finland use dozens of data centers every day without necessarily being aware of it. Data centers enable services such as:
Everyday services: online banking, card payments, messaging and e-commerce
Public services: patient records, taxation and digital government services
Business operations: production management, logistics and product development
Research: scientific computing and weather forecasting
AI and cloud services: AI applications, video calls and other cloud services
Entertainment: streaming, online gaming and social media
Further information
Antti ‘Jogi’ Poikola
Managing Director
Finnish Data Center Association
+358 44 337 5439
antti.poikola@fdca.fi
Kirsi Hyytinen
Senior Scientist, Research Team Leader
VTT Technical Research Centre of Finland Ltd
+358 40 581 8495
Kirsi.Hyytinen@vtt.fi
The Finnish Data Center Association (FDCA) represents more than 380 companies ranging from data center operators and system suppliers to consultants, regional development companies, education providers, and professionals in design and construction. Our activities are always guided by Finland’s long-term interests.
Explore Finland’s data center ecosystem
VTT Technical Research Centre of Finland Ltd is a state-owned and state-funded, non-profit applied research organisation and company that produces independent and impartial research, develops cutting-edge technologies, and helps businesses and society renew and innovate