Government investments yield results

German company Hetzner Online AG announced its plans to situate a new data centre in Finland.

Today, on 28 April, German company Hetzner Online AG announced its plans to situate a new data centre in Finland. Moreover, the company is now investing in the ongoing Cinia project to construct a submarine cable connection to Europe. The initial value of the contract is approximately MEUR 10.

According to an assessment by Hetzner Online, the key factors affecting the decision to situate operations in Finland are the price and reliable provision of energy, the ongoing Baltic Sea cable construction project, the cool Finnish climate and proximity to Russia. Strong connections are used to link the data centres in two geographical areas into a seamless complex that allows observing different user needs.

Powerful competitive advantage in data centre electricity tax decision

According to Minister of Economic Affairs Jan Vapaavuori, the government has made long‑term efforts to attract the data centre to Finland. The data centres of many international companies are already operating in Finland. The most renowned of these are the Google and Microsoft data centres, and the Yandex centre in Mäntsälä.According to Vapaavuori, the decision to lower the tax rate paid by data centres to the industrial level as well as favourable infrastructure once again yield results.

-The competition for large data centres is tough. Right now, Finland has the advantage of being an interesting and competitive location in Northern Europe. According to Vapaavuori, this advantage must be cherished in the future—approximately 60 similar or larger data centres will be built in Western Europe by 2020 and Finland has good prospects in the competition.

A quick data connection to Europe allows digital business growth

According to Sirpa Paatero, the minister responsible for state ownership steering, the state can serve as an enabling operator between the public and private sectors. The state launched the submarine cable project and invested MEUR 20 in it while private investors matched the state’s investment.

-A fast, high‑quality, cyber‑safe connection to European and global networks through a submarine optical fibre cable supports the growth of the digital economy and the industrial Internet in Finland. According to Paatero, the cable has significant direct and indirect national economic repercussions.

She says Hetzner launching operations in Finland is a precise example of the government’s objectives in the sea cable project. According to Paatero, a quick, direct and reliable connection between Finland and Germany gives Hetzner the opportunity to increase its capacity in Finland.

Investing would serve the growing markets in Northern and Eastern Europe

The planned investment would serve the growing markets in Northern and Eastern Europe. The geographical location of Finland is well suited to this. On this scale, investments amount to MEUR 100–200 in 5–7 years and the permanent employment effect would total 40–80 people. The construction phase will also offer employment.

The exact location of the investment is still being evaluated. Finland offers a range of good choices for data centre location. It is essential to find an environment suitable for the technology used by the investor, a good existing infrastructure and traffic connections that allow international operations.

The Bavaria‑based family company Hetzner Online AG is a German digital economy operator that offers data centre services to the SME market. The company has two large data centres in Germany, in Nuremberg and Frankfurt. The company is extremely profitable and financially sound. It has approximately 90,000 customers. The company is looking for new customers and market areas.

Additional information:
Industrial Counsellor Severi Keinälä, Ministry of Employment and the Economy, tel. +358 29 506 4006
Advisor to the Minister of Economic Affairs Laura Manninen, Ministry of Employment and the Economy, tel. +358 50 361 7511
Director General Eero Heliövaara, Prime Minister’s Office, tel. +358 29 516 0150
Special Advisor (Ownership Steering) Valtteri Aaltonen, Prime Minister’s Office, tel. +358 50 462 6693
CEO Ari-Jussi Knaapila, Cinia Group Ltd, tel. +358 50 2179
Deputy CEO Jukka-Pekka Joensuu, Cinia Group Ltd, tel. +358 40 179 8855

Source: Ministry of Employment and the Economy and Prime Minister’s Office