Finland is currently attracting exceptional interest in energy-intensive investments, such as data centers. Yet these projects are still often evaluated in isolation, without considering the broader system.

All energy-intensive projects share the same basic logic: they consume large amounts of electricity. For this reason, electricity generation must be considered simultaneously in their planning.

At present, data center projects are progressing rapidly in terms of permitting, but the supporting power generation does not necessarily develop at the same pace. In practice, the only form of production capable of meeting this demand quickly and at sufficient scale is wind power combined with dedicated energy storage solutions.

I have previously examined the same phenomenon from the perspective of the hydrogen economy: without sufficient new electricity generation, investments will not materialize.

Planning a data center or hydrogen project without securing electricity supply is comparable to planning a road trip without fuel stations. The plan may look good on paper, but in practice, the journey is likely to end prematurely.

Electricity price and availability determine investment decisions

Finland’s strength has so far been its high level of energy self-sufficiency, largely fossil-free generation, and relatively low electricity prices by European standards. These are key reasons why international operators view Finland as an attractive investment destination.

However, this situation can change quickly.

If new electricity generation is not built at a sufficient pace, electricity prices will rise or self-sufficiency will weaken. In that case, Finland’s key competitive advantage disappears—and with it, the investments.

The conclusion is straightforward: both new industrial activity and new electricity generation are needed simultaneously. Both represent significant investments also at the municipal level.

Investments will not materialize if energy generation and projects progress at different speeds

Current planning and decision-making are fragmented: projects are assessed separately, without a clear link to electricity generation. As a result, the timelines of investments and energy development do not align.

In data center projects, investment decisions are typically made within 18–36 months. A decision will only be made if the required electricity is credibly available within that timeframe. Without this certainty, investments will not proceed.

A holistic approach means, in practice, first defining the target state: does Finland want new industrial activity, energy self-sufficiency, and economic growth? Based on this, it must be assessed how much electricity is required and how it will be produced.

Planning electricity generation and consumption must therefore proceed in parallel. Without a clear national direction and implementation plan, this will not happen – and investments will not materialize. Recent public discussion has provided some optimism regarding renewable energy development in Finland, but unfortunately, this progress is not yet visible at the practical level. Barriers to renewable energy development must be removed to ensure that energy-intensive investments have access to the electricity they require.

New investments do not fit into the current electricity system

The scale becomes evident when looking at the numbers.

By the end of 2025, Finland had approximately 45 data center projects, representing investments exceeding 1 billion euros. A single 500 MW data center can consume approximately 4 TWh of electricity annually.

Compared to Finland’s total annual electricity production of approximately 82 TWh, the scale is clear: just a few large projects would account for a significant share of total electricity consumption.

Without a substantial increase in electricity generation, some of these projects will inevitably not be realized. Data center operators evaluate locations holistically, and if electricity is not sufficiently available, affordable, or reliable, the investment will be made elsewhere.

Eastern Finland risks missing out on growth without solutions for power generation

This challenge is particularly visible in Eastern Finland, where significant data center investments are being planned but where new electricity generation remains limited. At the same time, the region’s wind power potential is not being fully utilized.

The current government has committed to addressing the situation, but tangible progress has so far been limited. At the same time, parliamentary elections are less than a year away. This creates a contradiction: major data center investments that could bring substantial economic benefits and jobs are being planned for the region, while the required energy solutions are not advancing at the same pace.

Electricity can be transmitted, but the further it travels, the more expensive and vulnerable to disruptions it becomes. Without local electricity generation, the realization of investments remains uncertain.

In addition, new uncertainties have emerged in the operating environment, related to siting, distance requirements, and environmental values. These factors can slow down project development and increase uncertainty in investment decisions.

Finland’s competitive advantage depends on electricity

At present, Finland compares well internationally: electricity is relatively affordable, production is largely fossil-free, and conditions for data centers are favourable. However, this advantage is not permanent.

If electricity generation does not grow alongside investments, Finland will lose its key competitive edge. As taxation, location, and market size are not Finland’s primary strengths, the importance of electricity availability and price becomes even more pronounced.

Finland urgently needs new major investments. Now is the time to make the decisions that enable them.

If Finland wants to attract data centers, hydrogen economy investments, and other forms of new industrial activity, electricity generation must be significantly increased—quickly and in a coordinated manner.

The key question for decision-makers is clear: will the efficient development of new electricity generation be enabled, or will the investments be lost?