TikTok is doubling down on Europe. The company plans to invest 1 billion euros to build a second data centre in Finland, it told Reuters on Wednesday, as it pushes to store more European user data within the region.
The new facility will come up in Lahti in southern Finland. TikTok said it will start with a capacity of 50 megawatts and can be expanded to 128 megawatts.
The investment is part of its broader 12 billion euro European data sovereignty initiative, aimed at strengthening protections for over 200 million users in the region, the company told Reuters.
The move comes after TikTok’s Chinese parent ByteDance avoided a potential ban in the United States earlier this year over data protection concerns. At the same time, European governments have been tightening scrutiny on social media platforms, particularly around user safety and algorithm-driven content.
Finland draws big tech, but concerns remain
Finland has increasingly attracted data centre investments from companies such as Microsoft and Google, driven by lower energy costs, access to low-carbon electricity, and cooler weather conditions. The country also offers a stable regulatory environment within the European Union.
However, TikTok’s earlier plans in Finland had raised concerns among politicians. Its first data centre project, revealed last year, triggered criticism over transparency and security risks.
While Finland’s defence ministry approved that investment in 2024, some lawmakers said they were not informed beforehand. Then-minister of economic affairs Wille Rydman had called for the proposal to be reconsidered, citing concerns around openness.
Existing operations and timeline
TikTok said European user data is currently stored with additional safeguards across facilities in Norway, Ireland and the United States.
Its first Finnish data centre in Kouvola is expected to be operational by the end of this year. The newly announced Lahti facility is scheduled to be completed by 2027.