Data centre projects worry large firms about electricity crisis: survey

Large Finnish corporations are concerned that the numerous data centre projects planned in Finland could threaten the adequacy of electricity supply, according to a survey commissioned by OP Financial Group.

As many as 84% respondents believe that data centre investments will significantly increase competition for electricity supply and grid capacity in Finland, said OP in a press release on Monday referring to the Survey of Large Corporations.

More than 80% of the respondents also believe that Finland's energy and grid policy should ensure equal treatment of companies investing in data centres and traditional industrial companies.

"Data centres, the AI cluster and quantum technology are potential growth sectors for Finland. We need investments, but not all data centre projects deliver equal value to the Finnish economy," said Katja Keitaanniemi, Chief Executive Officer of OP Corporate Bank.

According to Keitaanniemi, it is essential to assess the jobs, tax revenue, research and development activity, infrastructure and other lasting added value that the investments generate in Finland. Energy policy measures are also needed to ensure that there is enough electricity for both traditional industry and those data centres that generate the greatest added value in Finland.

The government's role in supporting data centre projects is a divisive subject among large corporations. Of the executives who responded to the survey, 40% agreed that the government should stop supporting foreign data centre investments because they generate few jobs and little tax revenue for Finland. By contrast, 39% disagreed with this idea.

"The data centre boom could affect the competitiveness of Finnish industry. At the same time, it creates indirect growth opportunities in several sectors, such as construction. The message from large corporations focuses above all on the conditions attached to investments, the adequacy of electricity supply and grid capacity, and the equal treatment of different sectors," said Jarkko Nikkanen, Senior Vice-President, Corporate Lending of OP Corporate Bank.

Although the attitudes of large Finnish corporations towards data centres primarily depend on energy policy, they view data centres as more than merely an energy and economic policy issue.

More than 70% of large corporations believe that decisions concerning data centres should take particular account of the impact of the investments on security of supply and national security.

From a security perspective, the majority of large corporations are in favour of international technology giants investing in data centres in Finland: around 60% of the respondents consider it better, in terms of data protection and security of supply, for foreign companies to build their data centres in Finland rather than elsewhere.

A total of 141 senior executives representing 124 large Finnish corporations and subsidiaries of large foreign corporations operating in Finland responded to the survey. According to their latest certified financial statements, the companies responding have a combined revenue of over 221 billion euros, and they employ over 490,000 people in total. The survey was conducted in autumn in partnership with the Nordic Institute of Business and Society (NIBS) think tank founded by Aalto University professors.