TikTok plans to invest €1 billion in a second data centre in Finland, reinforcing its strategy to localize European user data and address growing regulatory scrutiny.
The new facility, located in Lahti, will initially operate at 50 megawatts of capacity, with the potential to scale up to 128 MW. The investment is part of TikTok’s broader €12 billion European data sovereignty initiative aimed at enhancing data protection for over 200 million users across the continent.
Owned by ByteDance, TikTok has faced increasing pressure from governments in both Europe and the United States over concerns related to data privacy and platform security. The expansion comes shortly after the company avoided a potential U.S. ban earlier this year.
Finland has emerged as a strategic hub for data centre investments, attracting major players such as Microsoft and Google. The country offers favorable conditions including a cold climate, low-cost renewable energy and a stable regulatory environment within the European Union.
However, the project has also raised political concerns. Finnish officials previously questioned transparency and potential security risks associated with TikTok’s infrastructure investments. Despite these concerns, local authorities have approved the expansion.
TikTok currently stores European user data across facilities in Norway, Ireland and the United States. Its first Finnish data centre in Kouvola is expected to become operational by the end of this year, while the new Lahti facility is scheduled for completion by 2027.
The move highlights a broader industry shift toward regional data storage, as technology companies respond to stricter regulations and geopolitical sensitivities surrounding data sovereignty.
