The real foundation for data centres in the Nordics is energy stability

This is the new business critical

Many energy providers talk about powering data centres. That’s all well and good, but far fewer can actually deliver fossil-free baseload at scale, over long periods of time, while carrying the risk themselves. That difference becomes increasingly important as digital infrastructure turns mission critical, turning the energy powering it business critical. The days when energy was just an operating cost are gone.

This is where energy strategy comes into play. And it’s also where Fortum’s role in the Nordic energy system stands out.

Data centres are still baseload operations

There is a lot of discussion about flexibility, demand response and smart load management. And sure, data centres do have some room to adjust. Certain workloads can be scheduled. And backup systems like UPS batteries offer limited flexibility.

But, importantly, none of these solutions changes the core reality.

Most data centres are, and will remain, baseload operations. Servers need power 24/7 today and tomorrow, but also ten or twenty years from now.

That’s why energy decisions for data centres shouldn’t be about finding the cheapest hour. But rather about securing continuous, reliable supply at scale. Without interruptions and without annoying (and usually expensive) surprises.

More to the point: for data centres, stability matters much more than short-term optimisation. In practice, this is a fundamental requirement.

A Nordic energy system built for long-term investments

The good news is that the Nordic region offers one of the most reliable energy foundations in the world. Electricity production is already largely fossil-free, based on a strong mix of hydropower, nuclear and growing wind capacity.

Grid reliability is exceptionally high. In Finland, for example, the transmission reliability rate in the main grid reached 99.99995% in 2025. That’s one of the highest levels in the world. And the market operates under clear, well-established rules.

And for data centres, who need to plan decades ahead, this creates something truly essential: predictability.

But predictability doesn’t come automatically. It depends on how energy is sourced, how contracts are structured, and how risk is managed over time. And that’s where experience makes a real difference.

From volatility to predictability

We all know that volatility has become a permanent feature of the global energy market. Weather-dependent generation, electrification and geopolitical uncertainty all play a role. Prices move faster, and swings are way sharper than before.

But the flipside is that volatility doesn’t have to be a problem.

Because, for data centres, the goal isn’t to perfectly time the market. Their goal is to reduce uncertainty. Full stop. And in this, long-term Power Purchase Agreements (PPAs) are a key tool.

By securing low-carbon baseload power for 5–20 years, operators gain predictable costs, operational certainty and stronger financing conditions.

Our hedging and portfolio-based solutions also help smooth out short-term fluctuations, making it easier to plan expansions, investments and day-to-day operations. Read more: Volatility is here to stay – but it doesn’t have to be a risk

For data centers, energy isn’t about buying electricity at the right moment. It’s about knowing that your operations will keep running – even when the market moves. – Tobias Mehnert, Customer Director at Fortum

So, who you sign with matters

When contracts run for decades, counterparty strength matters. A lot. It’s not just about price risk, but about who is able to deliver over time.

This is where Fortum’s scale and legacy come into play. With more than 100 years in the Nordic energy market and one of the region’s largest portfolios of low-carbon generation – spanning hydropower, nuclear, and wind – Fortum is not built around single assets or short investment cycles.

This allows us to commit to long-term delivery backed by our own production and balance sheet. It is also supported by more than 200 energy professionals across the Nordics working with trading, risk management, portfolio optimisation and market analysis every day. That means less uncertainty for customers, and a partner that stays the course through different market conditions. Year after year, decade after decade.

Our role is to take uncertainty off the table. By combining large-scale fossil-free generation with long-term contracts and market expertise, we help data center operators focus on growth instead of energy risk. – Tobias Mehnert, Customer Director at Fortum

Efficiency by design, as a bonus

Of course, energy strategy doesn’t stop at supply. As data centre capacity grows, efficiency becomes just as important.

In the Nordics, the climate itself plays a role in this. Cold conditions reduce the need for extensive energy-intensive cooling, lowering overall energy demand and easing peak loads on the system. Independent industry sources confirm that the Nordic region’s cool climate supports more efficient data center cooling (Verne Global, “The Nordic Advantage for High Performance Compute”) (Verne Global, “The Nordic Advantage for High Performance Compute”) - External link

For operations that run continuously, this improves efficiency and supports stable performance over time. The Nordic climate is, in short, well suited for data centres.

Combined with fossil-free baseload power, energy efficiency is built into the system itself and not added afterwards.

Local integration also matters. Waste heat recovery is one example. By reusing excess heat from server cooling in district heating networks or industrial processes, data centers can reduce emissions beyond their own footprint while contributing to local energy systems.

One example of this is Fortum’s collaboration with Microsoft in Finland, one of the world’s largest data center heat recovery projects, that shows how digital growth, efficiency and circular energy solutions can scale together. Read more: Fortum and Microsoft’s datacentre project in the Helsinki region

Put simply, energy stability is the new competitive advantage

As demand for data centres continues to grow, competition between regions and partners is intensifying. In this, fossil-free electricity, high grid reliability and predictable conditions are becoming decisive factors.

But in the end, it comes down to execution. And the strength to see it through.

For data centre operators looking to scale in the Nordics, a solid energy strategy is where it starts. With Fortum’s scale, experience and fossil-free generation base, energy stability becomes more than a regional advantage. With us, you’ll access a reliable foundation for long-term growth.

Want to know more? Reach out to Tobias Mehnert, Customer Director at Fortum, or learn more about how Fortum supports data center energy needs.

Let’s move forward, together.