TikTok has announced plans to build a €1 billion ($1.1 billion) data centre in Kouvola, Finland, as part of its Project Clover, a €12 billion initiative aimed at strengthening data security for its 175 million European users. The move comes just days after the European Union fined TikTok €530 million ($600 million) over allegations of transferring European user data to China without adequate safeguards.
Commitment to Data Security
TikTok describes the new data centre as a “significant step” in its efforts to store European user data locally and enhance security oversight. The facility will be part of TikTok’s European Enclave, ensuring strict access controls and independent monitoring to address concerns about foreign data access.
Regulatory Challenges and Industry Response
The EU fine, the second-largest ever imposed on TikTok, reflects growing scrutiny from Western governments over data privacy and security risks. TikTok has denied wrongdoing and plans to appeal the decision, arguing that its data governance measures exceed regulatory expectations.
Why Finland?
TikTok selected Finland due to its strong digital infrastructure, clean energy mix, and skilled tech workforce. The Nordic region has become a preferred destination for data centres, with companies like Microsoft and Meta also investing in large-scale facilities.
