Fast grid connections and low energy costs make the Nordics ideal for data centres

The Nordics stand out with fast access to powerful and reliable power grids 

The Nordics stand out as an excellent location for data center expansion with highly developed electrical grids that support large-scale industrial operations, fast connection processes, and some of the lowest levels of grid congestion in Europe. The robustness and reliability of the grids is complemented by extensive cross-border interconnections, facilitating energy trade and enhancing grid stability. 

For example, Fingrid in Finland reported a 99.9995% electricity transmission reliability rate in 2024. The Finnish transmission system operator Fingrid also has extensive investment plans for further strengthening Finland’s internal electricity transmission capacity and cross-border connections. 

In Sweden, and especially in Finland, the process for grid connection and permitting is efficient and supportive of new projects. This makes it easier to quickly deploy and scale data centre facilities. In addition, both countries have well-developed infrastructure and technological expertise in energy systems, including advanced research facilities. 

Lower electricity costs give data centres additional advantage 

The Finnish power price has historically been strongly influenced by the German power price due to, for instance, exposure to the same fuel and emission prices, and indirect connections through Sweden. 

Until the strong price increase of natural gas in the heights of the energy crisis in 2022, the spread between Finnish and German power prices remained relatively low. However, the natural gas price hike in 2021 and the subsequent energy crisis in 2022 emphasized the German, Dutch and British power markets’ exposure to natural gas price and created a notable gap between the Finnish and German power prices.

Figure 1. Average spot prices in Europe 2024.

The markets expect the price gap between the Nordics and Continental Europe to remain in the coming years. The expected future spread is at least partly due to the improved power balance in Finland via the deployment of Olkiluoto 3 nuclear power plant and the rapid increase in Finnish and Nordic wind power capacity in the past couple of years.

Finland and Sweden are both leaders in low-carbon energy, with a significant portion of their electricity coming from renewable and nuclear sources. In 2024, Finland generated 95% of its electricity from these low-carbon sources, while Sweden achieved an impressive 98%.

Figure 2. Source: Eurostat 2024. Other RE includes biogas, biomass and geothermal power.

From Grid to Greatness: helping data centers succeed in the Nordics

Data centres are competing to access the market as fast as possible. That’s why we, at Fortum, want to support data centre investments by developing ready-to-build sites, helping to shorten investment timelines by several years. Our strong connections to the transmission grid operators, along with close cooperation with landowners and municipalities, ensure a smooth and efficient development process.

Once your data centre is ready for operation, we’re on hand to guide you through every aspect of the Nordic energy market—from securing your power supply and managing hedging strategies to making the most of waste heat. Thanks to a dependable supply of competitively priced, low-carbon electricity, the Nordic region provides an outstanding platform for power-intensive enterprises. With over a century’s experience in this sector, we understand the energy landscape inside out, whether it’s navigating new regulations, anticipating political developments, or identifying the best locations for your next energy project.