A billion-euro investment is placing TikTok at the centre of a growing European debate over data and security.
The company plans to build a second data centre in Finland, this time in Lahti, investing around 1 billion euros as it accelerates efforts to store European user data in Europe, Reuters reports.
The project is part of TikTok’s wider 12 billion euro “data sovereignty” initiative, designed to strengthen protection for more than 200 million users across the region. The new facility will begin with a capacity of 50 megawatts and could expand to 128 megawatts.
Political concern
The announcement comes at a sensitive time.
TikTok’s Chinese parent company, ByteDance, recently avoided a potential U.S. ban over data protection concerns. Meanwhile, European governments are increasing pressure on social media platforms to safeguard both user data and children from addictive algorithms.
Finland has become a magnet for data centres. Global tech companies including Microsoft and Google have been drawn by the country’s cold climate, stable regulatory environment and access to cheap, low-carbon electricity.
But TikTok’s expansion has sparked political concern.
“At the very least, I would hope that this property development company would reconsider whether it really wants TikTok as its tenant,” said Wille Rydman, Finland’s former minister of economic affairs, pointing to security risks and lack of transparency.
Local officials in Lahti have taken a different view.
“In the context of Lahti, the investment is substantial. We are pleased that a main tenant agreement has been signed and that the project is progressing as planned,” said Niko Kyynäräinen, mayor of Lahti.
TikTok says European user data is currently stored across data centres in Norway, Ireland and the United States, with additional safeguards in place. The company aims to move more of that data to Europe in the coming years.
The first Finnish data centre is expected to open later this year, while the new facility in Lahti is scheduled to be operational by 2027.
