TikTok Plans to Invest €1 Billion New Data Center in Finland

TikTok plans to invest €1 billion (US$1.14 billion) to construct its first data center in Finland as it shifts data storage for its European customers, a spokesman confirmed.

TikTok is central to an escalating global debate over digital sovereignty, national security, and user data privacy. Across Europe and North America, governments are tightening regulations on foreign-owned tech platforms amid fears of surveillance and misuse of personal data.

In response, TikTok has launched a major initiative to restructure its data infrastructure, aiming to store user information within regional borders. As part of this pivot, the company invests in new data centres across Europe, signalling a broader commitment to comply with the General Data Protection Regulation (GDPR) and build trust with lawmakers and users. This strategy mirrors a growing trend in tech known as ‘data localisation,’ where companies store and process data in the same jurisdiction where it is collected to avoid cross-border legal conflicts.

TikTok plans to invest €1 billion (US$1.14 billion) to construct its first data center in Finland as it shifts data storage for its European customers, a spokesman confirmed.

The spokesman declined to provide any other information as he verified the plan. Finland’s prime minister’s office did not immediately answer the request for a response.

ByteDance, a Chinese company that owns TikTok, has been working to address people’s concerns about the Chinese government having access to European user data.

With plans to invest €12 billion over ten years, it introduced a new data security policy in 2023 under the title ‘Project Clover‘ in response to mounting criticism from lawmakers on both sides of the Atlantic.

Due to privacy concerns, TikTok has been blocked on staff phones in some countries, including the European Parliament and the European Commission. Meanwhile, the US government has threatened to ban the app in the United States on national security grounds unless it sells its US assets.

Based on some misunderstandings, TikTok has referred to the restrictions as foolish. Its website confirms that it keeps European user data in a specific European data enclave housed among data from US centers, Norway, and Ireland.

After construction began in 2023, TikTok’s first data center in Norway under Project Clover was fully live this month.
According to insiders, TikTok (with more than 175 million European subscribers) intends to reveal more data centers in the upcoming years.

Because of the lower energy prices and the availability of inexpensive, emission-free electricity, Nordic countries have grown in popularity as locations for data centers for software firms like Microsoft and Meta Platforms.

Brad Smith, the president of Microsoft, stated in Brussels on Wednesday that Finland is undoubtedly one of the locations where they are still expanding their infrastructure.

He added that they can service a large portion of Europe from Finland because, first, they have access to carbon-free energy, and second, it has fantastic connectivity, he said.

Veijo Terho, the Finnish Data Center Association’s chairman, stated that more than 20 new data centers with a combined capacity of 1.3 gigawatts and a value of approximately €13 billion in Finland.

Its infrastructure investments are not just about compliance. They are about survival in a climate of heightened digital scrutiny. As the US moves closer to forcing ByteDance to divest its American operations and EU regulators push for stricter data handling laws, the company’s ability to operate globally hinges on its willingness to regionalize and secure its infrastructure.

Its actions may well define the future playbook for international platforms navigating the complex intersection of global expansion, local regulation, and digital trust.