TikTok Will Build A Data Center Worth IDR 18.7 Trillion In Finland

TikTok wants to build its first data center in Finland. (photo: x @mariselapenny)

JAKARTA TikTok plans to invest 1 billion euros (around Rp. 18.7 trillion) to build its first data center in Finland. This move is part of the company's efforts to move European user data storage to European territory. This was revealed by a TikTok spokesperson on Wednesday, April 30.

The spokesman did not provide further details, but confirmed the plan previously disclosed by two sources who knew the project firsthand.

This move is part of TikTok's new data security strategy known as Project Cover, which was launched in 2023. The project aims to ease concerns that arise from various parties regarding the possibility that the Chinese government can access TikTok user data in Europe. As part of Project Clover, TikTok plans to spend up to 12 billion euros in investment over the next 10 years.

Several countries as well as institutions such as the European Parliament and the European Commission have banned the use of TikTok on staff's work devices for security and privacy reasons. In the United States, the government even threatens to ban the app completely if TikTok assets in the US are not sold.

TikTok denies the allegations and calls the ban based on a fundamental misconception. On its official website, TikTok states that European user data is stored in a dedicated data area in Europe covering data centers in Norway, Ireland and the US.

The first data center TikTok in Norway has been fully operational this month after construction began in 2023. TikTok, which currently has more than 175 million users in Europe, is also planning to build several additional data centers in the next few years.

Nordic countries, including Finland, have become a favorite destination for global technology companies such as Microsoft and Meta to build data centers. This is due to colder air temperatures (reducing cooling energy costs) and the availability of emission-free electricity at low prices.

"Finland is one of the locations we continue to develop," said Microsoft President Brad Smith, at an event in Brussels, Wednesday, April 30. First, we have extensive access to carbon free energy, and second, the connectivity is very good, so we can serve almost the entire European region of Finland.

According to the Chairperson of the Finnish Data Center Association, Veijo Terho, currently more than 20 new data centers are being planned in Finland with a total value of 13 billion euros and a capacity of 1.3 gigawatts.