TikTok to Build Second Data Center in Finland for €1 Billion
Social media platform TikTok, a subsidiary of the Chinese company ByteDance, has announced its decision to invest €1 billion in the construction of a new data center in Finland. This information was confirmed in an official statement from TikTok, highlighting the significance of this project for the company.
The new data processing center (DPC) will be located in the city of Lahti, one of Finland's key urban centers. According to the company's statement, the new data center will consume 50 megawatts (MW) of power, with the potential for future expansion up to 128 MW. This indicates TikTok's serious intentions regarding the expansion of its capabilities in the region, which aligns with the growing demand for data storage services.
It is noteworthy that in May of last year, TikTok had already announced plans to invest €1 billion in another data center, which will be situated in the Finnish city of Kouvola. The launch of this first data center is scheduled for the end of the current year, while the second data center in Lahti is expected to be operational by 2027 at the latest. These two projects are part of a broader initiative by the company known as Clover.
The Clover project aims to enhance the level of data protection for over 200 million European TikTok users. The total cost of this ambitious project is estimated at €12 billion, underscoring the seriousness of the company's intentions to ensure the security of its users' data.
Interestingly, in May of last year, the Irish regulator imposed a fine of €530 million on ByteDance for the illegal transfer of data concerning European users to China. This occurred against the backdrop of increasing scrutiny regarding privacy and data protection issues in Europe. Additionally, in October, the European Commission accused TikTok of violating the Digital Services Act (DSA), further emphasizing the importance of investments in new data centers.
In its announcement, TikTok stated that the Lahti data center, once operational, will significantly enhance the company's ability to store data of European users within Europe. This will be achieved through strict access controls and the implementation of advanced monitoring systems, providing an additional layer of data protection.
Currently, the data of European TikTok users is stored under heightened security in three existing data centers located in Norway, Ireland, and the United States. This indicates that the company has already taken measures to ensure data security, but the new investments in data centers in Finland will further strengthen its position in the European market.