TikTok Invests $1.16 Billion to Build Second Finland Data Center

Dow Jones04-08

By Jiahui Huang

ByteDance's popular short-video platform TikTok is investing the equivalent of $1.16 billion to build a second data center in Finland, stepping up efforts to localize data storage in Europe amid regulatory scrutiny.

The new facility, which will be located in the city of Lahti, is TikTok's second billion-euro data-center investment in the Nordic country within a year. The company established its presence in Finland last May, investing in a data center in Kouvola.

Both investments are part of what TikTok calls Project Clover, a 12 billion euros initiative aimed at strengthening data protection for more than 200 million European users, the company said Wednesday.

TikTok has been under pressure from European regulators over how it handles user data and potential access by its Chinese parent, ByteDance. The company has sought to reassure authorities by committing to move its data storage for European users locally under tighter controls.

As part of efforts to localize its European data, TikTok has hired cybersecurity company NCC Group to audit its data controls and protections, monitor data flows and flag any anomalies, the company said.

TikTok in January reached a separate agreement in the U.S. to continue operating there under a restructured ownership and oversight framework.

Under that arrangement, negotiated during the Trump administration, the company agreed to establish a new U.S.-based entity controlled by investors viewed as aligned with U.S. interests. The video-sharing app's data-management and algorithm training for American users will be overseen by Oracle, which has longstanding ties to U.S. government-security initiatives.

Finland has become a popular hub for data centers in Europe, attracting technology companies such as Google, Microsoft and Equinix thanks to its cool climate, affordable renewable energy and robust digital infrastructure.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

April 08, 2026 03:17 ET (07:17 GMT)

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TikTok Invests $1.16 Billion to Build Second Finland Data Center

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