Economy

TikTok will open a data centre in Finland

TikTok has confirmed the development of a new data centre in Kouvola (Koria), Finland, as part of its €12 billion “Project Clover” initiative aimed at strengthening data sovereignty for European users. The project, which allocates €1 billion to the Finnish facility, is a strategic move to store and process European user data exclusively within the region.

Kouvola facility to reinforce data localisation efforts

The data centre under construction in Kouvola’s Koria district is being positioned as a key component of TikTok’s European infrastructure, along with similar centres in Norway and Ireland. These sites are designed to store user data, not to run AI systems or house high-performance microchips, a point stressed by Christian Hannibal, TikTok’s Head of Public Policy in Finland.

“This data centre, like our others in Europe, is strictly for storing European user data, not for running AI systems,” Hannibal told Yle. This distinction is particularly important amid fears that the site could be exploited to bypass USA chip restrictions.

Political scrutiny over Chinese ownership

The announcement has stirred political debate in Finland. Minister of Economic Affairs Wille Rydman (Perussuomalaiset, The Finns Party) and Minister of Transport and Communications Lulu Ranne (Perussuomalaiset, The Finns Party) have voiced concerns over the Chinese origins of TikTok’s founders and the involvement of Chinese businessman Huang Wei, who reportedly holds nearly 40% of shares in the company managing the Kouvola project. Finland’s national security agency Supo has warned that European user data could potentially be accessed by Chinese authorities.

TikTok is addressing these concerns by collaborating with a third-party cybersecurity firm to audit its data handling practices and by reinforcing its data localisation strategy through these European facilities. However, Rydman expressed disappointment that the government was informed only after the lease agreement had been signed.

Despite this, Prime Minister Petteri Orpo (Kansallinen Kokoomus, National Coalition Party) has downplayed the security implications, stating he sees no barriers to the project moving forward.

Image: Petteri Orpo

Strategic reasons for choosing Finland

TikTok’s decision to invest in Finland was influenced by the country’s advanced digital infrastructure, skilled workforce, favourable climate, and diverse energy production. Once operational, the data centre is expected to employ around 200 people, though not all roles may be filled locally.

“We don’t yet know the extent of the skills available in the Kouvola area, but we aim to hire locally,” Hannibal noted.

TikTok has stated that it currently has no plans for additional data centres in Finland or elsewhere in Europe. The Kouvola centre will remain a strategic cornerstone of TikTok’s European operations as it seeks to mitigate regulatory and political scrutiny across the continent.

Shares:

Related Posts