Data centers are exceptionally large-scale investments with impacts that extend over decades. As such, their development is not only a technical or economic matter, but a strategic decision that shapes both municipal and broader societal development.

In projects of this scale, the outcome alone is not what matters – how it is achieved is equally critical.

Research by the University of Eastern Finland highlights that the progress of substantial energy investments is strongly influenced by how the process is perceived: whether stakeholders have had the opportunity to participate, and whether decision-making has been consistent and transparent.

In practice, data center development progresses step by step, from landowner engagement to zoning and environmental impact assessment. This is not a single consultation exercise, but a long-term process in which understanding and trust are built over time.

A data center is an energy project, not just a facility

Data centers cannot be viewed as stand-alone electricity consumers. They are directly linked to how new power generation is developed.

A key solution is the hybrid energy park model, in which renewable energy generation, energy storage, and data center demand are integrated into a single system. In this approach, supply and demand are planned together rather than separately.

For example, a 300 MW data center consumes approximately 2.6 terawatt-hours (TWh) of electricity annually. Meeting this demand requires around 790 MW of new wind power capacity – equivalent to roughly one hundred modern onshore wind turbines. In addition, storage or other backup generation solutions are required to manage production intermittency.

In simple terms, without new power generation, data center investments will not materialize.

Key takeaways:

• A 300 MW data center consumes approximately 2.6 TWh of electricity annually. This requires around 790 MW of new wind power capacity (wind power is intermitten, so meeting continuous demand requires significantly higher installed capacity)
  
• This corresponds to approximately 100–110 modern 7.2 MW onshore wind turbines.
  
• Additional storage or other balancing capacity is required.

At the same time, data center projects generate broader local impacts, including infrastructure investment, employment, and opportunities to utilize waste heat. When generation and storage are developed in parallel with consumption, upward pressure on electricity prices can also be mitigated. Energy parks therefore function not only as technical solutions, but also as enablers of regional development.

Compliance alone is not sufficient

Regulation defines the framework for projects, but it does not determine how they are implemented in practice.

Responsible development means going beyond minimum compliance. In practice, this includes integrating renewable energy, developing new energy infrastructure, and ensuring proactive and transparent stakeholder engagement from project initiation to commercial operation.

In UB Renewable Energy’s projects, the objective is to develop solutions that are sustainable from both energy-system and local-development perspectives. This approach is also guided by sustainable finance frameworks, such as SFDR Article 9 classification, to which UB Renewable Energy Fund is committed.

Uncertainty deters investment

Data center investments gravitate towards environments where risks are manageable.

At the municipal level, this requires consistent decision-making, clear processes, and the ability to advance projects efficiently. Uncertainty slows investment, clarity enables it.

The same applies at the national level. Unpredictable regulation, lengthy permitting processes, or unclear policy direction can result in projects being delayed, canceled, or relocated to other countries.

Competition for large-scale investments is not won by setting targets alone. It requires a predictable and consistent investment environment. Within the current regulatory framework, Finland and its municipalities have the tools to provide this – if the direction is crystal clear and mutually aligned.

Three factors that determine project success

A successful data center project is not defined by a single solution, but by the overall approach.

The key factors are:

• A clear and consistent development process with meaningful stakeholder participation.
  
• An integrated energy solution linking the data center to a hybrid energy park and the wider energy system.
  
• A predictable investment environment that supports long-term decision-making.

When these elements are in place, a data center becomes part of a functional and sustainable system that supports long-term regional development, rather than remaining a stand-alone investment.