TikTok has revealed plans to spend 1 billion euros ($1.16 billion) on constructing another data storage facility in Finland, marking the company’s second such investment in the Nordic country in under a year, officials announced Wednesday.
The social media giant’s decision comes as its parent company ByteDance recently escaped a potential U.S. prohibition related to data security issues, while European governments increase demands for social platforms to shield young users from potentially harmful algorithms.
The new facility will be located in Lahti, a city in southern Finland, with starting capacity of 50 megawatts and eventual capability reaching 128 megawatts. TikTok described the project as part of its broader “12 billion (euro) European data sovereignty initiative delivering industry-leading protections for the data of over 200 million European users.”
Finland has emerged as an attractive destination for major tech companies seeking data center locations, with firms like Microsoft and Google drawn to the nation’s frigid temperatures, affordable clean energy, and stable business environment within the European Union framework.
However, TikTok’s Finnish expansion has faced political resistance. When news of the company’s initial data center broke last year, Finnish lawmakers expressed concern about being kept uninformed despite defense ministry approval. Former economic affairs minister Wille Rydman publicly questioned the project due to security worries and lack of transparency.
“At the very least, I would hope that this property development company would reconsider once more whether it really wants TikTok as its tenant,” Rydman told Finland’s public broadcaster Yle, referencing TikTok’s local partner.
Currently, TikTok stores European user information with additional security measures across facilities in Norway, Ireland, and the United States. The company’s initial Finnish data center in Kouvola is scheduled to begin operations by year’s end, while the newly announced Lahti facility should be running by 2027.
Lahti’s mayor welcomed the substantial investment announcement.
“In the context of Lahti, the investment is substantial. We are pleased that a main tenant agreement has been signed and that the project is progressing as planned,” Mayor Niko Kyynarainen stated.
