TikTok plans to invest €1 billion to build a second data center in Finland, expanding its European data storage infrastructure as the company works to address regulatory scrutiny over how it handles user data, per Reuters.

The new facility, located in Lahti in southern Finland, will have an initial capacity of 50 megawatts and a total potential capacity of 128 megawatts. TikTok expects it to be operational by 2027.

The announcement follows TikTok’s €1 billion investment in a first Finnish data center in Kouvola, which was revealed in May 2025 and is scheduled to come online by the end of 2026. That facility was developed by local firm HyperCo Oy as part of TikTok’s “Project Clover” initiative, which targets €12 billion in total European data infrastructure spending.

TikTok currently stores European user data across centers in Norway, Ireland, and the United States. The company said it serves more than 200 million European users, including 170 million in the EU.

Data Sovereignty

TikTok framed the Lahti investment as part of its “European data sovereignty initiative delivering industry-leading protections for the data of over 200 million European users.” NCC Group, a cybersecurity firm, provides independent monitoring of “Project Clover’s” data controls and access flows.

The expansion comes as TikTok navigates ongoing regulatory pressure. The Irish Data Protection Commission fined TikTok €530 million in 2025 over data transfers to China and transparency failures, a decision the platform is appealing. The company also disclosed in April 2025 that limited EU user data had been found on Chinese servers, contradicting prior statements, though TikTok said the data had since been deleted.

Local Reception

Lahti Mayor Niko Kyynarainen welcomed the investment. “In the context of Lahti, the investment is substantial. We are pleased that the main tenant agreement has been signed and that the project is progressing as planned,” he said in a statement.

Finland has attracted major data center investments from Microsoft and Google, driven by its cold climate, low-cost and low-carbon electricity, and EU regulatory stability, according to Reuters. Finnish politicians had previously raised security concerns about TikTok’s first Finnish data center after Reuters reported it in April 2025.

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