Singapore tech firm DayOne to invest €1.2bn in Finnish green data centre in Lahti
Singapore-based data centre developer DayOne’s hyperscale facility in Lahti will create 1,000 construction jobs and tap into Finland’s renewable energy grid.
Text: Martti Asikainen, 18.8.2025 Photo: Adobe Stock Photos
Singapore-based data centre developer DayOne has announced plans to invest €1.2bn in a massive hyperscale data centre campus in Finland, marking one of the largest foreign technology investments in the Nordic country’s recent history.
The facility, to be built in Lahti – Finland’s former European Green Capital – will transform a 98,901 square metre former industrial site into a state-of-the-art digital infrastructure hub capable of handling 128 megawatts of IT capacity when fully operational.
Construction is set to begin with site demolition in the third quarter of 2025, with the first phase comprising a 50MW facility scheduled to come online by 2027. The project is expected to create over 1,000 construction jobs during peak development.
Jamie Khoo, Chief Executive of DayOne Data Centers, emphasised that Finland represents an ideal strategic choice for the company’s European growth.
“With its reliable energy infrastructure, renewable energy leadership, highly skilled workforce and naturally favourable climate that significantly reduces energy consumption and operational costs, Finland offers unique advantages”, he said in the press release.
The investment represents a significant expansion for DayOne, which operates data centres across Singapore, Malaysia, Indonesia, Thailand, Hong Kong and Japan.
The company, which recently secured $1.9bn through Series A and B funding rounds from investors including SoftBank Vision Fund and Citadel’s Kenneth Griffin, is positioning itself as a major player in the global hyperscale data centre market.
Tech giants turn to renewable energy
Finland has emerged as an increasingly attractive destination for data centre investments, with tech giants drawn to its abundance of renewable energy, cool climate that reduces cooling costs, and political stability.
The Nordic country generates over 80% of its electricity from low-carbon sources, making it particularly appealing for companies seeking to reduce their environmental footprint.
DayOne’s Lahti facility has been designed to leverage these natural advantages, with plans to utilise Finland’s cool climate for free cooling systems and eliminate the need for freshwater cooling through air chiller technology. The company is also exploring waste heat recovery systems that could feed into Lahti’s district heating network.
According to mayor of Lahti Niko Kyynäräinen, the data centre to be built in Lahti is designed to handle large-scale data processing, enabling the creation of a strong digital ecosystem.
“In addition to the location, cool climate, clean energy and stable conditions, Lahti’s investment environment once again proved to be a winning operational model,” he said.
The facility is being designed to achieve LEED Gold certification or higher, reflecting growing industry pressure to build more sustainable data infrastructure as global data consumption continues to surge.
Nordic region emerges as data centre hub
Beyond the immediate construction impact, DayOne expects the facility to support 100 direct skilled positions once operational. The company has also committed €2.5m to LUT Universities to strengthen local IT education and research capabilities, including joint research and development projects and student internship programmes.
The announcement comes as demand for data centre capacity continues to grow exponentially, driven by cloud computing, artificial intelligence applications and the increasing digitisation of business operations. Hyperscale data centres, designed to support cloud computing companies and large enterprises, represent the fastest-growing segment of the market.
However, the industry faces mounting scrutiny over its environmental impact, with data centres accounting for an estimated 1-2% of global electricity consumption. This has led to increased focus on sustainable design and renewable energy sourcing.
DayOne’s Finnish investment also highlights the Nordic region’s growing importance as a data centre hub, competing with traditional markets like Ireland and the Netherlands. Sweden, Norway and Denmark have all seen significant data centre investments in recent years, attracted by similar combinations of renewable energy, cool climates and stable regulatory environments.
The Lahti project forms part of DayOne’s broader European expansion strategy, as the company seeks to capitalise on growing demand for data centre services across the continent. With digital transformation accelerating across industries and regulatory requirements for data localisation increasing, European data centre capacity is expected to continue growing rapidly over the coming decade.
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