TikTok plans to invest €1 billion ($1.16 billion) to build a second data centre in Finland, as it accelerates efforts to localize data storage for its European users.
The new facility will be located in Lahti, southern Finland, with an initial capacity of 50 megawatts and the potential to scale up to 128 megawatts. The investment is part of TikTok’s broader €12 billion European data sovereignty initiative aimed at strengthening data protection for over 200 million users in the region.
Owned by ByteDance, TikTok has been under increasing scrutiny globally over data privacy and security concerns. The move to expand European data infrastructure comes as regulators push for stricter safeguards and greater local control over user data.
Finland has emerged as a preferred destination for data centres, attracting companies such as Microsoft and Google due to its cool climate, low-cost renewable energy, and stable regulatory environment.
However, TikTok’s expansion in the country has not been without controversy. Earlier plans for its first Finnish data centre in Kouvola drew criticism from local politicians, including Wille Rydman, who raised concerns about transparency and potential security risks.
TikTok said its European user data is currently stored across facilities in Norway, Ireland, and the United States, with enhanced safeguards in place. The Kouvola data centre is expected to be operational by the end of this year, while the newly announced Lahti facility is scheduled to come online by 2027.
The investment highlights TikTok’s efforts to address regulatory pressures while strengthening its infrastructure footprint in Europe amid growing demand for data sovereignty and compliance.