TikTok has confirmed plans to invest 1 billion euros ($1.14 billion) in constructing its first data center in Finland, as part of an effort to relocate data storage for European users to the region. The company spokesperson confirmed the development on Wednesday but declined to provide additional details.
The move is part of TikTok’s broader strategy to address concerns regarding the potential for Chinese government access to the data of European users. To tackle these worries, TikTok launched “Project Clover” in 2023, a new data security initiative, with plans to invest 12 billion euros over the next decade in response to increasing regulatory scrutiny on both sides of the Atlantic.
Several nations, as well as the European Parliament and European Commission, have banned TikTok from government-issued devices due to privacy concerns. Meanwhile, the U.S. government has threatened to prohibit the app unless its American operations are sold. TikTok has defended the bans, claiming they are based on misunderstandings, and insists that European user data is securely stored in dedicated European data centers across Norway, Ireland, and the U.S.
As part of Project Clover, TikTok’s first data center in Norway went live earlier this month after construction began in 2023. The company, which has over 175 million users in Europe, plans to announce additional data centers in the future.
Nordic countries, including Finland, are becoming increasingly popular for building data centers, with companies like Microsoft and Meta also investing in the region. The cold climate helps reduce energy costs, and there is ample access to inexpensive, emission-free electricity.
Microsoft President Brad Smith emphasized Finland’s advantages in terms of carbon-free energy and strong connectivity, making it an ideal location to serve much of Europe. In Finland, more than 20 new data centers are planned, with an estimated total investment of 13 billion euros and a capacity of 1.3 gigawatts, according to Veijo Terho, chairman of the Finnish Data Centre Association.
