European Countries Divided Over China's Rp 19 Trillion Megaproject
European Countries Divided Over China’s Rp 19 Trillion Megaproject
Jakarta, CNBC Indonesia - The Chinese social media giant TikTok plans to invest around €1 billion (Rp 19 trillion) to build a second data centre in Finland. The target for this latest megaproject in the European region is to prepare it in less than a year.
The construction of this new data centre aligns with TikTok’s efforts to relocate data storage for users in the European region, according to the company’s official statement on Wednesday (8/4) local time.
This announcement follows increasing pressure from European regulators on social media companies. Europe demands that platform providers protect children in the region from addictive algorithms.
Additionally, in January, ByteDance, TikTok’s parent company, avoided a total ban in the US by handing over operations in that country to a new entity initiated by the Trump administration.
TikTok stated that the €1 billion investment in Finland is intended to build a data centre with an initial capacity of 50MW and potential total capacity of 128MW in Lahti, in the southern region of the country, quoted from Reuters on Wednesday (8/4/2026).
Finland, known as the happiest country in the world, has become a magnet for tech giants like Microsoft and Google to build data centres. Finland is considered strategic for reducing energy costs and mitigating climate impacts.
This is because Finland has a cold climate, which can save more on energy costs to cool the heat emitted by data centre infrastructure. Additionally, Finland sets cheaper and more stable electricity and carbon costs, with a business-friendly regulatory climate.
Finland Divided
Nevertheless, some Finnish politicians are concerned about TikTok’s plan to build its first data centre in the country after Reuters revealed it in April 2025.
Although the Finnish Ministry of Defence approved the investment in 2024, politicians claim they were not informed. The then Finnish Minister of Economy, Wille Rydman, said last year that the megaproject from the Chinese giant needs to be considered.
He argued there are concerns about national security. Additionally, TikTok is also deemed less transparent regarding the company’s plans to build the data centre.
“At the very least, I hope the property developer company will reconsider whether they really want TikTok as their tenant,” Rydman told Finland’s public broadcaster Yle, referring to TikTok’s local partner.
TikTok stated that European user data is currently stored with enhanced security in three data centres in Norway, Ireland, and the US. The first data centre in Finland, specifically in Kouvola, will operate by the end of this year, and the second will operate in 2027.