TikTok plans to invest €1 billion in its first Finnish data center to store European user data locally, addressing privacy concerns. The move is part of its €12 billion “Project Clover” initiative, following similar investments in Norway. Nordic countries attract tech giants due to green energy and cooling advantages.
TikTok, owned by China-based ByteDance, has confirmed plans to invest €1 billion ($1.14 billion) to establish its first data center in Finland, as part of its strategy to localize data storage for European users. The move comes as the company seeks to alleviate concerns over potential Chinese government access to European user data.
Under its “Project Clover” initiative, launched in 2023, TikTok has committed to investing €12 billion over a decade to strengthen data security for European users. The company has faced increasing scrutiny from Western regulators, with the EU, U.S., and other governments banning the app from official devices over privacy and national security fears. TikTok has dismissed these bans as based on misunderstandings, emphasizing that European data is already stored in secure facilities in Norway, Ireland, and the U.S.
The company’s first Norwegian data center, part of Project Clover, became fully operational this month. With over 175 million users in Europe, TikTok plans to expand its data infrastructure further in the region.
Why Finland?
The Nordic region has emerged as a prime location for data centers due to its cold climate (reducing cooling costs) and abundant renewable energy. Microsoft and Meta have also invested heavily in the area.
Microsoft President Brad Smith highlighted Finland’s advantages, stating: “We have access to carbon-free energy, and its connectivity allows us to serve much of Europe from here.”
According to Veijo Terho, chairman of the Finnish Data Centre Association, more than 20 new data centers are in the pipeline for Finland, representing €13 billion in investments and 1.3 gigawatts of capacity.
TikTok’s latest move underscores its efforts to rebuild trust with European regulators while expanding its infrastructure in a region increasingly seen as a hub for sustainable tech investments.