TikTok is set to invest €1 billion (approximately $1.14 billion) in building its first data centre in Finland, marking a significant step in its ongoing efforts to localize data storage for European users. The move, confirmed by a TikTok spokesperson on Wednesday, forms part of the company’s broader initiative to address data security and privacy concerns raised by governments across the West.
While the spokesperson declined to elaborate further, two sources familiar with the matter previously disclosed the plan to Reuters. The Finnish Prime Minister's Office has yet to comment on the development.
Owned by Beijing-based tech firm ByteDance, TikTok has faced persistent scrutiny over the potential for Chinese government access to user data. This has prompted a wave of bans on the app across various public institutions, including the European Parliament, European Commission, and several national governments. In the United States, lawmakers have gone so far as to threaten an outright ban unless TikTok divests its U.S. assets.
In an effort to ease these concerns, TikTok launched "Project Clover" in 2023—a comprehensive data security framework backed by a €12 billion investment commitment over the next decade. The company argues that the growing restrictions on its platform are rooted in misconceptions and stresses that it is taking meaningful steps to ensure user privacy.
Part of Project Clover involves establishing a secure "European data enclave" to house user data across facilities in Norway, Ireland, and the United States. Earlier this month, TikTok’s first data centre in Norway became fully operational, marking a key milestone in the initiative.
The planned facility in Finland will significantly bolster TikTok’s European data infrastructure. With over 175 million users across Europe, the company reportedly aims to expand its data centre footprint further in the coming years.
Finland, along with its Nordic neighbors, has emerged as a prime location for data centres due to its cool climate and abundant supply of renewable, carbon-free energy—factors that help reduce both environmental impact and operational costs. “Finland is definitely one of the places where we’re continuing to build out our infrastructure,” said Microsoft President Brad Smith during a speech in Brussels. “It has good connectivity and ample access to carbon-free energy, enabling us to serve much of Europe effectively from there.”
According to Veijo Terho, chairman of the Finnish Data Centre Association, Finland is currently planning more than 20 new data centres, amounting to a combined investment of €13 billion and offering a total capacity of 1.3 gigawatts.
TikTok’s expansion in Finland marks not just a strategic move to localize data but also a broader trend among tech giants seeking stable, sustainable environments for data infrastructure. As regulatory scrutiny continues to mount, such investments may become increasingly essential for global digital platforms operating in Europe.