Finland is at a crossroads, balancing its ambitious climate goals against a rapidly evolving digital landscape. Two major reports released in late November 2025—one from Carbon Gap and Sweco Finland, and another outlining a national data centre roadmap—have spotlighted both the challenges and opportunities facing the Nordic nation. As Finland aims to achieve its 2035 climate targets and position itself as a leader in green technology, the interplay between carbon removal strategies, sustainable energy, and the booming data economy is coming into sharp focus.
According to Carbon Gap’s newly published Carbon Removal Readiness Assessment of Finland, released on November 27, 2025, the country will not meet its 2035 climate ambitions without urgent investment in carbon dioxide removal (CDR) and a greater reliance on natural CO₂ sinks. The report, the first in a series designed to assess carbon removal readiness across Europe, underscores an urgent need for strong policy signals and funding mechanisms to unlock both nature-based and engineered CDR solutions. As the climate clock ticks, these findings have prompted policymakers, businesses, and citizens alike to consider what must change—and how fast.
The Carbon Gap report lays out three possible scenarios for Finland’s path to its 2035 targets, focusing on land and forest management, bioenergy with carbon capture and storage (BECCS), biochar, and enhanced rock weathering. While the scenarios present an optimistic vision, they also highlight the risks of delaying action or relying too heavily on land use, given Finland’s limited carbon storage capacity. The message is clear: the time for half-measures has passed.
Public attitudes are evolving as well. Interviews conducted by Carbon Gap found that Finnish citizens are increasingly supportive of CDR solutions, particularly nature-based approaches. On the political front, there are ongoing discussions about providing economic support for BECCS in the upcoming Climate and Energy Strategy, signaling a growing consensus that bold steps are needed. The report concludes, "Finland has all the building blocks to deploy a robust portfolio of CDR projects, but urgent policy action will be vital for attracting investment, boosting CO₂ infrastructure, and positioning Finland as a leader on a European level."
Meanwhile, Finland’s digital economy is experiencing its own transformation. A new national roadmap released in November details the country’s advantages for data centre development: a cool climate, robust infrastructure, cheap fossil-free energy, and a government eager to promote innovation. As of late November, there are around 30 data centres in Finland, but that number is expected to soar as artificial intelligence, cloud services, and digitalisation accelerate.
These data centres aren’t just technological marvels—they’re economic engines. Finnish Prime Minister Petteri Orpo commented that data centres "support digitalisation and the development of the data economy, as well as supply security." The government is actively seeking investments that create added economic value through employment, tax revenue, and innovation. Notably, the data centre boom is reaching beyond traditional growth areas, giving a much-needed lift to regional economies and research hubs.
Yet, the rapid growth of data centres is not without its critics. Veli-Matti Mattila, former CEO of software firm Elisa, has called for cuts to electricity taxes and a softening of permission rules to attract more investment. At the same time, he insists that data centres should be required to register their activities for greater transparency. The debate has intensified with tech giants like TikTok planning new centres in places such as Kouvola, raising questions about the balance between economic benefit and oversight. Mattila argues, however, that it’s better for companies like TikTok to establish themselves in Finland—inside the EU—than elsewhere.
Energy remains a central concern. Data centres are notorious for their enormous electricity needs and the excess heat they produce. Banker Björn Wahlroos, speaking to Finnish TV, remarked, "Finland is in the far north of Europe, at the end of the line, with a climate that is only good for one thing: cooling data centres." While the cool climate is an asset, high tax levels and energy costs remain barriers for investors and workers. Wahlroos, who moved to Sweden in protest against Finland’s inheritance tax, stressed the need for more attractive financial incentives and reliable, cheap energy to lure international investment.
To address these challenges, the Finnish government has doubled down on its commitment to expand electricity production, especially from fossil-free sources. When Petteri Orpo’s government took office in 2022, it pledged to ramp up new electricity capacity, promote cleantech solutions, and facilitate the green transition across industry, heating, and transport. Data centre projects are being encouraged to connect to the grid and make productive use of their excess heat, such as for district heating—an approach that could simultaneously reduce emissions and enhance energy efficiency.
Nuclear power is once again on the agenda. The government has promised to approve all applications for new nuclear projects that meet national security criteria, including small modular reactors (SMRs). New legislation aims to streamline the process and foster innovation. The memory of the aborted Hanhikivi nuclear plant, which was scrapped after Russia’s 2022 invasion of Ukraine, still lingers, but Finland’s determination to wean itself off Russian energy is stronger than ever.
Helsinki, in particular, is exploring the possibility of small-scale nuclear power plants within the city limits. In November, public meetings were held to discuss the environmental impact and safety concerns of such a move. While some residents voiced apprehension about long-term risks, the city’s strategy already includes small-scale nuclear as a pillar for stable, fossil-free electricity. City councillors are expected to make a decision in coming years, but the debate is far from settled.
Elsewhere, cities like Kajaani are pioneering projects to reuse excess heat from data centres. The vocational high school there, in collaboration with the Finnish Natural Resources Institute Luke and local companies, has been working to create new facilities that harness this excess heat. The Icelandic firm Borealis Data Center is expanding its presence, and Google is preparing to establish a sizeable footprint just outside Kajaani’s city centre. Project manager Sirpa Keränen envisions a future where heated pavements, greenhouses, fish farms, and even winter swimming pools are powered by the warmth generated by data halls—dreams that, while ambitious, are technically within reach.
The Nordic region as a whole is positioning itself as a leader in renewable energy and the green transition. At an October meeting, Nordic energy ministers emphasized the need to expand transmission grids and accelerate energy production, aiming to secure the region’s place at the forefront of global energy security—even in the challenging Arctic environment.
Finland’s dual push for climate leadership and digital innovation is fraught with both promise and peril. The nation has the resources, public support, and policy momentum to lead in both carbon removal and digital infrastructure. But as the Carbon Gap report and the national data centre roadmap both make clear, success will depend on urgent, coordinated action—before the window of opportunity closes.
