Finland's Data Centre Boom and Hydrogen Potential
Key Ideas
- Finland experiences a surge in data centre investments in 2025, with EUR 8.9bn already committed, more than double the investments in 2024.
- The country anticipates a significant rise in power demand, potentially doubling to 160 TWh by 2035, driven by renewable energy adoption and industrial projects.
- Hydrogen is expected to play a crucial role in Finland's energy transition, with 59 hydrogen projects in the pipeline and significant contributions projected by the end of the decade.
- To become a leading hydrogen producer in Europe, Finland needs increased investment and streamlined permitting processes to support the growth of its hydrogen economy.
According to the Confederation of Finnish Industries (EK), Finland is experiencing a boom in data centre investments, with EUR 8.9bn already announced in 2025, surpassing the total investments made in 2024. This surge is seen as a significant economic opportunity, bringing both activity and demand to the country. Helsinki, the capital city, is also considering changes in electricity tax breaks for data centre operators, following a similar move made by Sweden.
Furthermore, Finland's energy landscape is poised for a transformation, with an anticipated near doubling of annual power demand to 160 TWh by 2035. This growth is attributed to industries shifting towards renewable electricity to achieve the country's carbon neutrality goals. Data centres and hydropower investments are expected to drive this increase, with hydrogen emerging as a key player in the energy transition.
Janne Peljo, EK's chief policy adviser, highlighted that while Finland has 59 hydrogen projects in the pipeline, significant contributions from hydrogen are projected to begin towards the end of the decade. The success of Finland's hydrogen economy will play a crucial role in determining the country's power consumption levels by the 2030s. However, to solidify its position as a leading hydrogen producer in Europe, Finland needs to attract more investment and expedite permitting processes to support the development of its hydrogen sector.
Topics
Projects
Renewable Energy
Renewable Power
Carbon Neutrality
European Market
Investments
Data Centres
Industrial Projects
Electricity Tax
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