European Data Centre Market: Why Finland Is Becoming an AI Infrastructure Hotspot

Key Takeaways

• Finland is attracting major AI infrastructure investment. Google's €13 billion commitment, the Fortum nuclear power agreement, and Cerebras' planned 165 MW facility in Mikkeli show the scale of development.
• Power availability is influencing European builds, as investment continues in established FLAP-D markets, while Finland, Spain, and other regions offer additional development opportunities.
• Delivering new capacity requires specialist talent. Electrical infrastructure, cooling, grid integration, investment, and construction expertise are all important for bringing complex data centre projects online.

Europe’s data centre market is expanding rapidly, with the market expected to grow at a 13.07% CAGR to reach $108.92 billion by 2031. Generative AI and continued cloud adoption are increasing demand for power-intensive infrastructure, while established markets across Frankfurt, London, Amsterdam, Paris, and Dublin (FLAP-D) face constraints around grid capacity, land, and planning.

Why Is Finland Attracting AI Infrastructure Investment?

Finland combines several characteristics that are increasingly valuable as European data centre demand grows. Its cooler climate can support efficient cooling, while a low-carbon electricity mix, including nuclear generation, provides a strong foundation for energy-intensive facilities.

Google's €13 Billion Finland Investment and Its Long-Term Power Deal

Google plans to invest at least €13 billion in Finnish digital infrastructure during 2027 and 2028, including developments and supporting infrastructure in Hamina, Kajaani, Muhos, and Vaala. The investment is expected to contribute an average of €3.6 billion a year to Finland's GDP during construction and support more than 37,000 jobs nationwide.

The expansion is backed by a long-term energy agreement with Fortum. The 22-year Power Purchase Agreement covers up to 50% of the Loviisa nuclear power plant's capacity through to 2050. It gives Google a long-term source of low-carbon electricity while providing Fortum with the reliable revenue needed to extend the plant's operating life.

Cerebras Plans a 165 MW AI Data Centre in Mikkeli

Cerebras Systems and Compute Nordic Finland are developing a 165 MW AI data centre in Mikkeli, with construction of the initial 50 MW phase already underway. The facility is designed to meet the requirements of high-density AI compute. Closed-loop cooling will recirculate water rather than using municipal supplies, while the site is designed to support heat reuse for the surrounding community.

Finland's Data Centre Expansion Extends Beyond Hyperscalers

AtNorth is expanding its FIN04 campus in Myllykoski, Kouvola, with YIT contracted to build an additional facility. YIT is also working with XTX Markets on the construction of a third data centre in Kajaani.

Other announcements are also in the pipeline, including TikTok committing €1 billion to a new data centre in Lahti, following its earlier investment in Kouvola. Applied Digital has also secured access to up to 1GW of potential power capacity for a planned AI campus in Finland, with power availability expected from 2028.

How Europe's Data Centre Expansion Is Spreading

FLAP-D Markets Are Still Growing Despite Power Constraints

Google's Waltham Cross data centre in Hertfordshire shows how established markets are adapting to growing demand for cloud and AI infrastructure. The £734 million facility opened in 2025 as part of Google's wider £5 billion UK investment programme. Shell Energy Europe manages Google's UK carbon-free energy portfolio, with the company's UK operations projected to run on around 95% carbon-free energy in 2026. The site also uses air cooling to limit water consumption and is designed to support off-site heat recovery for local use.

Building at this scale requires substantial access to capital. In September 2026, VIRTUS Data Centres secured a £2.45 billion financing package, including a £1.2 billion green capital expenditure facility to support further expansion across the UK and Europe.

Paris also added 72.5 MW of data centre capacity in the first half of 2026, which is ahead of JLL's full-year forecast. Established hubs are still adding capacity, but grid connection lead times continue to affect how quickly projects can progress.

Spain Combines Data Centre Investment with Energy Infrastructure

Spain is attracting investment through partnerships that combine energy supply with data centre development. Iberdrola and Echelon Data Centres have established Echelon Iberdrola Digital Infra, with more than €2 billion in planned investment, over 700 MW of secured capacity, and a potential portfolio of 5,000 MW. The first project, Madrid Sur, aims to deliver 144 MW of data processing capacity and has secured a 230 MW electrical connection.

AWS is also expanding its infrastructure in Aragón. Amazon has added €18 billion to its existing Spanish commitment, taking planned investment to a staggering €33.7 billion. The programme supports further cloud and AI capacity, alongside facilities for server assembly, testing, and repair. Amazon estimates the investment will support 29,900 jobs annually through its wider Spanish business ecosystem.

Digital Realty opened its first Barcelona data centre in May, adding 14 MW of planned capacity and strengthening connectivity with Mediterranean hubs including Madrid, Marseille, Rome, and Lisbon.

Grid Access Is Shaping Development in Europe's Secondary Markets

Ireland is tightening the conditions under which new data centres can connect to its electricity network. Policy now states that new facilities must provide generation or storage capacity on-site or nearby, matching their requested maximum import capacity. These rules are necessary to overcome the challenge of accommodating further data centre demand while maintaining grid security.

In Poland, Twenty20 Energy has announced plans for two data centres in the Pomeranian Voivodeship, at Słupsk and Redzikowo. The Gryfin project is planned to deliver 50 MW of compute capacity by 2028, with the potential to scale to 790 MW by 2030.

Norway is attracting further investment too, as Microsoft announced plans for a new data centre development in Sandnes in June 2026, while Bulk Infrastructure is expanding its own development pipeline around Arendal.

The Specialist Talent Needed to Deliver Europe's Data Centre Expansion

Europe's growing data centre pipeline requires investment in power and infrastructure, but projects also depend on people with the expertise to design, finance, build, and operate them.

Key roles include:

• Mechanical and Electrical Engineers
• Grid Integration Specialists
• High-Density Cooling Specialists
• Investment and Finance Professionals
• Site Selection Directors
• Construction and Commissioning Leaders

Data centre recruitment becomes particularly challenging when several projects are competing for people with the same technical experience. New facilities are often located in markets with relatively small specialist talent pools, requiring employers to look further afield. Understanding candidate availability, competing projects, and international relocation is an important part of workforce planning.

CSG Talent supports data centre businesses with specialist technical and leadership recruitment across international markets. Our sector knowledge, candidate networks, and international executive search experience help clients identify the talent required to deliver complex infrastructure projects.

Contact CSG Talent to secure the engineers and leaders needed to deliver complex infrastructure projects.

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