Finland’s Data Center Regulatory Landscape: Five Key Developments to Watch

Authors: Matti Lajunen, Anniina Kunnaton Read time: 4 min

Finland’s data center market continues to develop rapidly, and several regulatory reforms that are now progressing may have direct implications for developers, investors, and operators in the near future.

The proposed changes concern, for instance, the allocation of grid capacity, a new national data center register, Fingrid’s review of technical requirements for consumption facilities, connection principles and main grid service fees, and foreign direct investment screening. Together, these changes underline the importance of assessing regulatory requirements and project structures early in the development process.

Below, we highlight the key developments currently shaping data center projects in Finland.

1. New Principles for the Allocation of Grid Capacity

A proposed amendment to the Finnish Electricity Market Act would introduce a new prioritisation model for grid connection requests. Under the proposal, projects would be divided into four priority groups and ranked based on criteria including their purpose of use, location and possible flexibility, and electricity production commitments.

Data centers would generally fall within priority groups 2 and 3, depending on their capacity and flexibility commitments, and be subject to lower capacity thresholds than other consumption sites when allocated to a priority group. Applications in groups 2 through 4 would be considered in allocation rounds held twice a year. Network operators would also be required to take the priority groups into account when developing and reinforcing their grids.

If adopted, the reform would mean that scarce grid capacity would no longer be allocated strictly on a first-come, first-served basis. The allocation rounds could lengthen the processing of grid connection requests, particularly during the transition to the new system, with further delays possible where grid reinforcements are required.

The proposed amendments to the Finnish Electricity Market Act are expected to be approved before the end of the year and enter into force early next year.

2. Finland Proposes a National Data Center Register

The Finnish Government has submitted a proposal to establish a national data center register maintained by the National Emergency Supply Agency. The notification obligation would apply to data centers with an installed IT power demand of at least 0.5 MW. Buildings and known expansions forming part of the same project would be assessed together.

Operators would be required to submit information on matters including the data center’s ownership, location, purpose of use, capacity, project schedule, and electricity and water use. The notification would generally need to be made within 30 days of signing the grid connection agreement and, in any event, before construction begins. Material changes would require a supplementary notification.

Importantly, the notification would not constitute a permit: the authority could not approve, reject, or impose conditions on a project solely through the registration process. The proposed legislation is intended to enter into force on 1 April 2027. Existing in-scope data centers and projects already under construction would generally need to be notified by 30 June 2027.

3. Updates to Grid Codes and Other Terms Applied by the TSO

The Finnish transmission system operator Fingrid is currently updating and reviewing multiple grid codes and policies applicable to data center connections:

New technical specifications for consumption facilities KJV2026, which are expected to take effect in March 2027 after confirmation by the Energy Authority. As to the technical requirements, Fingrid has already applied similar principles to direct connectees since June 2026 under the separate technical requirements for large consumption facilities.

New general terms and connection principles, which will be subject to a new public consultation round during Q4/2026 and are expected to enter into force during Q1/2027 after the Energy Authority’s separate public hearing and confirmation. There is limited information available on the upcoming changes since the last public consultation, but we are monitoring the situation closely.

Review of the main grid service fee structure, which is expected to be confirmed by the Energy Authority in 2027, with full implementation anticipated in early 2029. Based on the current impact assessments, grid fees per unit of energy for data centers under the new structure are expected to be lower than average due to their high proportion of peak capacity use.

4. Updates to Project Plans to Be Carefully Reviewed

In recent months, network operators have taken considerably more stringent positions when evaluating how much project plans can be updated after a connection agreement has been entered into while still retaining the capacity reservation under the grid connection agreement. Any expansions and major changes to project plans should be carefully considered in light of the grid connection agreement before implementation.

5. FDI Screening to Expand to Greenfield Data Center Investments

As part of the FDI reform, the Finnish Government proposes extending foreign direct investment screening to certain greenfield investments. In the data center sector, greenfield screening would cover data centers with a capacity of at least 100 MW, as well as those involving certain AI or quantum technologies or other critical activities defined in the new law. The reform would also bring a broader range of foreign investors within the mandatory screening framework.

For developers and investors, this means that potential FDI approval requirements should be considered at an early stage when planning a project and timelines. The legislation is intended to enter into force on 1 April 2027, subject to parliamentary approval.

Our dedicated Data Center Team is happy to discuss these issues.