DayOne, a Singapore-based data center developer and operator, will invest about EUR 1.2 billion (US$1.4 billion) in a new hyperscale data center campus in Lahti, Finland.

The project will convert a former industrial site in the Kiveriö neighborhood into a facility with a total potential capacity of 128 megawatts, starting with 50 megawatts in the first building.

Construction will begin with site demolition in Q3 2025, with operations targeted for 2027.

The company aims to use the local climate for energy-efficient cooling and will work with Lahti Energy to connect to the city’s energy grid and explore waste heat integration into the district heating system.

DayOne will also partner with the city of Lahti, regional agencies, Lahti Energy, and educational institutions, committing EUR 2.5 million (US$2.9 million) to LUT Universities.

The project is expected to create about 100 permanent skilled jobs and employ up to 1,000 construction workers at its peak.

🔗 Source: DayOne

🧠 Food for thought

1️⃣ Finland offers compelling economics for hyperscale data center investments

DayOne’s €1.2 billion investment reflects Finland’s emergence as a cost-effective alternative to traditional European data center markets.

The country offers electricity prices up to 50% lower than other European locations, with data centers exceeding 5 MW benefiting from reduced energy tax rates of just 0.703 cents per kWh1.

Finland’s cool climate provides additional operational savings, with Helsinki’s average annual temperature of 6.6°C significantly reducing cooling costs compared to warmer European regions1.

This economic advantage has already attracted major investments, including Google’s €600 million expansion in Hamina and plans for a 250 MW facility by Silent Partner consortium12.

The Nordic region has established approximately 200 data centers over the past decade, with major tech firms like Microsoft, IBM, and Amazon driving this growth through their need for cost-efficient, scalable infrastructure3.

2️⃣ Sustainability pressures are reshaping data center location decisions

The project’s emphasis on waste heat reuse and LEED Gold certification reflects growing industry pressure to address data centers’ environmental impact.