Kouvola, a city in southeastern Finland, has welcomed TikTok's decision to establish a new data center there, emphasizing the significant economic and strategic benefits the project is expected to bring both locally and nationally, reported Xinhua.
In a statement released Wednesday, the City of Kouvola described the project as a "major investment" that could substantially stimulate economic activity across the region and the country. The facility, spanning 34,000 square meters, is currently under construction, with the first phase expected to take approximately one and a half years to complete.
"We welcome TikTok to Kouvola. This investment, exceptional in its category, strengthens Kouvola's status as an emerging regional hub and confirms its attractiveness as an investment destination," said Kouvola Mayor Marita Toikka.
"We are especially pleased with the jobs created and the long-term impact on the region's economy and vitality. The city will continue to work closely with the project's developers," she added
The project is anticipated to create hundreds of jobs during the construction phase, offering a short-term employment boost. Once operational, the data center is expected to support the long-term economic vitality of Kouvola and eastern Finland. Additionally, it will contribute to sustainable development through the integration of waste heat into the district heating network.
Kouvola's chief financial officer, Hellevi Kunnas, estimated that the city could gain approximately 800,000 euros annually in municipal tax revenue, based on the creation of around 300 new jobs linked to the project.
Beyond Kouvola, the project reinforces Finland's position as an attractive and competitive destination for data center operations. It is expected to accelerate the development of supporting infrastructure and enhance the country's IT capabilities, the statement said.
The data center will be situated in Koria village of the Kouvola municipality, and is being developed by Finnish real estate investment firm HyperCo. With a total investment of 1 billion euros, the facility will serve as a key element of TikTok's European infrastructure.
TikTok confirmed the project in a press release issued late Tuesday.
"This project is a core part of Project Clover, our 12-billion-euro initiative which is delivering industry-leading protections for the data of our 175 million-strong European community," TikTok stated, adding that Finland, particularly Kouvola, offers an ideal environment for the next phase of the company's development, thanks to its strong digital infrastructure, clean energy mix, sound data governance, and highly skilled tech talent.
Source: www.dailyfinland.fi
