Microsoft has signed a preliminary agreement to acquire about 190 hectares of land in western Finland for a potential new datacentre development, extending the company’s expansion in a country that has become a growing destination for cloud and artificial intelligence infrastructure.
The land lies within the GigaVaasa industrial zone on Finland’s west coast and is divided between the city of Vaasa and the neighbouring municipality of Mustasaari. Roughly two-thirds of the site is located in Vaasa, with the remainder in Mustasaari.
The company said the site was selected because of the area’s industrial setting and existing infrastructure. While Microsoft has not confirmed construction plans or an investment timetable, it said the acquisition supports its long-term strategy in Finland.
“We are pleased to take this step forward together with Vaasa and Mustasaari,” said Teemu Vidgrén, managing director of Microsoft Finland.
“Finland is an important country for us, and we are committed to investing here for the long term.”
Microsoft said it will continue discussions with local authorities, residents and businesses as planning progresses.
Local leaders welcomed the announcement, viewing the project as a potential addition to a region already known for energy technology and industrial investment.
Vaasa Mayor Tomas Häyry said the project would strengthen the area’s role as an international centre for energy expertise if it proceeds.
Mustasaari Mayor Rurik Ahlberg described the announcement as an important development for the wider region and pointed to opportunities linked to data technology and artificial intelligence.
The proposed site would become Microsoft’s second major datacentre initiative in Finland.
The company is already constructing a large datacentre region across Espoo, Kirkkonummi and Vihti in southern Finland. Microsoft confirmed in April that it had approved the second phase of that project, with new construction expected to begin during 2026.
The southern Finland development is being built in stages across three campuses. According to Microsoft, more than 3,500 people are currently employed on construction work, with the workforce expected to reach around 4,500 this summer and peak at roughly 7,500 workers during the project.
The company has also linked the project to Finland’s energy transition. Through a partnership with Fortum, waste heat from the future datacentres will be captured and fed into district heating networks serving Espoo, Kauniainen and Kirkkonummi. Microsoft estimates the system could eventually supply around 40 per cent of the heating demand for approximately 250,000 district heating customers and reduce annual carbon dioxide emissions by about 400,000 tonnes.
The latest land acquisition comes as Finland debates the rapid growth of the datacentre sector and its impact on electricity demand, jobs and security.
Several major international operators have announced projects across the country, attracted by Finland’s stable political environment, cool climate, reliable power grid and growing supply of low-carbon electricity.
Last month, National Coalition Party MP Heikki Vestman proposed legislation that would require large datacentres to secure matching new power generation capacity before connecting to the electricity grid. Vestman argued that datacentres should not increase electricity costs for households and industry.
“The opportunities of datacentres must not come at the expense of Finnish homes and industry,” he said in a statement.
Social Democratic Party deputy chair Pinja Perholehto has also called for stricter obligations, arguing that major datacentres should contribute to reliable electricity production, demand flexibility and energy efficiency measures.
The Finnish government has already decided to change the tax treatment of datacentres. Under legislation, electricity used in datacentres will move from Finland’s lower industrial electricity tax category to the standard tax category from July 2026. The measure is expected to increase annual tax revenues by around €47 million.
At the same time, the government has left open the possibility of creating a new support framework for datacentre investments that generate additional value for the Finnish economy as part of its wider data economy strategy.
According to estimates cited in parliamentary discussions, datacentre projects under construction or consideration could eventually require more than 2,000 megawatts of electricity, roughly equivalent to the combined output of the two reactors at the Loviisa nuclear power plant.
HT