Where will the data center be built?

The data center will be built to South of Highway 6 in Pajarila, Lappeenranta. The area is zoned for industrial and warehouse buildings. The buildings and equipment of the data center will be located on two plots combining 41 hectares. In the future, the site is accessed via Kettukuja and Pajarilanväylä.

The total area is notably large: 41 hectares matches the size of circa 57 full‑size football fields.

Source: Riitta Ruutiainen, City Geodesist, City of Lappeenranta

Who owns the plots?

The plots are owned by the City of Lappeenranta, which has leased them to Polarnode under land lease agreements for 60 years. The plots are leased to the lessee for use in accordance with the valid local plan. The annual rent for the two plots is a total of 358,424 euros. The annual rent is linked to the cost‑of‑living index.

Source: Johanna Alatalo, City Lawyer, City of Lappeenranta

What are the key terms included in the land lease agreement?

The lessee is responsible for all costs related to its project and must carry out all the necessary soil and ground surveys, construction feasibility studies and other necessary studies.

The planning and construction on the plots must comply with the applicable laws, regulatory permits, valid zoning plans and other regulations governing land use in the area, as well as the city’s building code, construction guidelines and good building practices.

The lessee is obligated to develop the plots within five years from the signing of the lease agreement. An extension may only be granted for a justified reason approved by the city. The lessee is responsible for the maintenance, cleanliness and safety of the rental property.

Both parties must comply with all national, EU and international regulations related to sanctions. Persons or companies subject to sanctions may not be involved.

The city has the right to terminate the agreement in accordance with sections 19, 21 and 23a of the Finnish Land Lease Act (258/1966). Failure to fulfil the construction obligation, in whole or in part, is ground for termination. The agreement may also be terminated if the lessee violates the sanction related terms of the contract.

The lessee is not entitled to compensation from the lessor for improvements made to the plots unless explicitly agreed otherwise. At the end of the leasing time, the lessee has the right to renew the lease. The lessee also has the right to purchase the leased plots during the lease period.

Source: Johanna Alatalo, City Lawyer, City of Lappeenranta

When will construction work start and how long they last?

Construction of the project will begin immediately. A data center project of this scale takes several years to complete and progresses in phases. This phased approach allows operations to begin before the entire site is finished. The first phase of the data center is expected to be completed in 2027.

Sources: Nebius and Polarnode

Who is responsible for the data center and its operations?

Nebius is responsible for the operations of the data center. Polarnode acts as the project developer during the development phase.

Sources: Nebius and Polarnode

What is the city’s role during the construction phase and during the operation of the data center?

During the construction phase, the city is responsible for street and municipal infrastructure planning, as well as for supervising construction work in accordance with the statutory duties of building control authorities. The city also monitors compliance with the land lease agreements in line with standard practices throughout the lease period.

During the operational phase, the Lappeenranta Region Environmental Office oversees the environmental impacts of industrial activities.

Sources: Tuomo Sallinen, Mayor, and Johanna Alatalo, City Lawyer, City of Lappeenranta

What are the employment impacts during the construction and operational phases?  

Data center will have a positive impact on the economy and employment of the Lappeenranta region during the construction phase, and the permanent and long-term vitality effects will also be significant. 

The construction phase is expected to create up to 700 skilled construction jobs, mostly sourced in the Lappeenranta area, with around 100 permanent positions once the data center is operational at full capacity, as well as hundreds of indirect employment opportunities for operations and maintenance.

Source: Nebius

The investment is exceptionally large. What does it include and what are the wider economic effects?  

The investment covers construction, technology, infrastructure, and energy solutions. In addition, the project brings significant economic benefits to the region: it increases demand for local services, strengthens business activity, and generates tax revenue.  In the long term, the data center may also attract other companies and investments to the area.  

Sources: Polarnode and Nebius

What kind of opportunities does the construction phase offer for local businesses? 

The construction phase offers a wide range of opportunities for local companies, for example in contracting, logistics, material deliveries and various support services.

Source: Nebius

What kind of synergy is there between local higher education institutions and the data center?

Data center provides LUT University and LAB University of Applied Sciences with an important research and development environment to accelerate the green and digital transition.  

The universities provide the data center with experts and solutions for energy efficiency, waste heat utilization, and integration of electricity and heating networks, while the data center offers a genuine industrial-scale test platform, thesis and internship positions, and jobs, as well as opportunities to develop new practical solutions.

This creates a strong synergy, where the data center benefits from the research and expertise of local universities, and universities receive an excellent environment to develop sustainable energy and digital infrastructure.

Source: Juha-Matti Saksa, Rector, LUT University 

Why is data center interesting for LUT University from a research perspective?

Data centers are significant nodal points of both information networks and electrical networks. Data centers typically use up to hundreds of megawatts of electrical power, which is why connecting them to the electrical grid requires specialized expertise and solutions.

The electrical power used in data center processors is completely converted into heat, which continues to challenge researchers to find solutions for integrating data centers into the thermal processes of communities and industry. LUT has extensive research into technology solutions for both electricity and heating networks. In addition, LUT's new research field of building and civil engineering can produce new systemic solutions for civil engineering that can improve the integration of energy and data networks into the structure of the community.

By controlling data processing in the data center, it is also possible to influence peak electricity consumption and thus make it easier for the data center to impose a load profile on the electrical network, which also challenges LUT's computer science researchers to find new algorithms and calculation methods.

Finnish experts in the electrical, energy and IT sectors are well placed to develop new innovations in data center energy solutions and calculation methods.  

Data centers may offer increasing export opportunities for the Finnish technology industry in the future. That is why data center operators are interesting partners for LUT University, which conducts technology research. 
 
Source: Olli Pyrhönen, Dean, LUT School of Energy Systems

What kind of collaboration is foreseen between the data center operators, City of Lappeenranta and South Karelia Employment Area to ensure the availability of the needed and skilled work force?

The employment area will begin close cooperation with the data center to jointly address recruitment and skills needs together with local educational institutions and various other stakeholders. The collaboration may include anticipating the recruitment needs of companies involved in the construction of the data center and subcontracting chain companies, acquiring and coordinating training and coaching solutions, as well as staffing services.  

The employment area is also prepared to engage in recruitment cooperation with other employment areas and through its services to support the skills needs that arise during the data center operational phase. For inquiries to company recruitments, please contact the business services of the South Karelia Employment Area. We serve employers and companies across the entire region at 05 6163 500.

Source: Sanna Natunen, Employment Director, City of Lappeenranta

Is the data center an international workplace and what is the working language? 

Nebius is an international working environment. Both Finnish and English are used as working languages at the Lappeenranta data center. 

Source: Nebius 

A major investment related to artificial intelligence attracts international attention. What kind of risk assessment and conclusions has the city made from a security perspective?  

Such incidents have not been reported in the operations of Dutch data center operator Nebius, which would pose a threat to Finnish security. Neither has there been any security risk reports over the company’s operations in different countries.

It is also noted that to build a data center in the United States and enter long-term, multi-billion-euro agreements with Microsoft, Meta and Nvidia, the company’s background and security related matters have been examined repeatedly and far more extensively than in the assessment conducted by the City of Lappeenranta. Nebius is considered trusted and significantly invested.  

Nebius’s interest in establishing a new data center in Lappeenranta is connected to Finland’s overall attractiveness as a location for data center operations and to Lappeenranta’s advanced energy infrastructure.

Source: Janne Mäkitalo, Security and Preparedness Advisor, Doctor of Military Sciences, Colonel (ret.), City of Lappeenranta  

How has the city examined the background of the data center operator? 

The background review was carried out using opensource intelligence methods. In practice, this means compiling a wide range of information about the company’s development, product developers, employees, ownership, locations, connections to different countries, any potential links to political leadership, the company’s products and services, and the general operation of data centers. Data was collected from independent sources, compared, and the results of the qualitative analysis were reported to the city management.

Source: Janne Mäkitalo, Security and Preparedness Advisor, Doctor of Military Sciences, Colonel (ret.), City of Lappeenranta

What potential impacts could the data center have on national security?  

Large real estate acquisitions or long‑term leases by foreign companies often attract attention, as they may raise concerns about national security especially if such properties are located near sites critical to national defence or security of supply. Although the operator in this case is a Dutch company largely owned by U.S. investment firms, this aspect was examined as well.  

According to the city’s assessment, there are no such critical sites near the planned data center in Pajarila. The city also reviewed if the location close to a national border could increase the potential for broader hybrid influence. No significant concerns were identified. From the city’s perspective, building the data center in Pajarila does not pose risks from a national defence point of view. On the contrary, it may offer opportunities for strengthening local capabilities.

Source: Janne Mäkitalo, Security and Preparedness  Advisor, Doctor of Military Sciences, Colonel (ret.), City of Lappeenranta

What is the data center’s significance from a security‑of‑supply perspective?  

Overall, both security of supply and data sovereignty can be considered to improve, as data must be processed in Finland in accordance with national laws and EU regulatory requirements.  

From a security‑of‑supply perspective, it is beneficial to have several data centers providing AI‑related services located in different parts of Finland. Distributed systems increase resilience and redundancy, which improves protection and crisis‑resistance. 
 
Source: Janne Mäkitalo, Security and Preparedness Advisor, Doctor of Military Sciences, Colonel (ret.), City of Lappeenranta 

How has the city assessed the potential environmental factors and risks related to the data center site?

The site has been examined for possible contaminated soil and natural values. The immediate environmental impacts caused by the operation have been assessed during the permit process.

In connection with preparing the local detailed plan for the area, comprehensive nature surveys and other expert studies have been carried out. 

Sources: Riitta Ruutiainen, City Geodesist, and Ilkka Räsänen, Environmental Director, City of Lappeenranta 

What kind of environmental impacts does the Pajarila data center have?

Data center will need lot of space, which will change the land use in the area. The area is reserved as an industrial area, which is why the impacts have been assessed already during the planning phase and in the general plan process.

The most immediate environmental impacts may involve noise generated by the data center’s cooling systems. These will be examined in more detail during the construction phase. In some cases, data centers include a backup power plant, but no such facility is planned for Pajarila.  

Construction requires a lot of earthmoving work, which will cause leveling of the area and traffic during construction. This may cause temporary noise and dust in the surrounding area.  

Data centers consume large amounts of water and electricity, both of which are produced outside the facilities. The production of these materials creates environmental impacts where production takes place.

There are no local environmental impacts in Pajarila.

Data centers are still a relatively new type of industrial operation, so there is limited long‑term experience regarding their environmental impacts. However, the Lappeenranta Region Environmental Office and the Finnish Supervisory Agency monitor the environmental impacts of industrial activities. If any unforeseen environmental harm occurs, the authorities can intervene through supervisory measures and prevent further impacts if necessary.

Source: Ilkka Räsänen, Environmental Director, City of Lappeenranta

Why does a data center generate waste heat, and what happens to it?  

Data center uses a large amount of electricity to operate its servers, and almost all this electricity eventually turns into heat.  Normally, this by‑product heat is cooled and released into the air. At the Pajarila data center, however, the goal is to recover and reuse the waste heat. The amount of generated heat could, for example, cover the summertime heating needs of Lappeenranta’s district heating network.  

Lappeenrannan Energia is currently working with the data center operator to determine how the waste heat will be utilized. The aim is to agree on solutions that are both cost‑effective and technically suitable.  

The process works as follows: The servers produce heat (for example 30–45 °C water or air). This heat is collected from the cooling system, and a heat pump raises the temperature to the level required for district heating (for example 70–115 °C). The heat is then fed into the district heating network.

Sources: Jussi Selenius, CEO, Lappeenrannan Energiaverkot Oy and Arto Nikkanen, CEO, Lappeenrannan Energia Oy

How does data center affect the availability of electrical capacity in the region – will there be enough electricity for everyone?  

Pajarila data center will require approximately 300 megawatts (MW) of power. This is a large amount of electrical capacity; for comparison, the highest power demand recorded so far by Lappeenrannan Energiaverkot Oy has been 177 MW.  

The additional needed electricity must be supplied through the national transmission grid, as there is very limited new, low-cost local electricity production, like wind power capacity, in Southeast Finland due to restrictions set by the Finnish Defence Forces.  

To transmit the required 300 MW of new load, the area will in practice need strong 400 kilovolt (kV) transmission connections.

The transmission capacity coming into South Karelia is significant on a national scale.  

Fingrid’s Yllikkälä 400/110 kV substation in Lappeenranta functions as a nationally important node in the transmission network. It is connected to several major 400 kV transmission lines in different directions, for example, to Huutokoski, Koria and Kymi. Yllikkälä also has a 110 kV connection to Imatra, which hosts Finland’s largest hydropower plant (192 MW). In addition, the site contains sizable battery storage facilities.  

There is also an existing 400 kV transmission line from Yllikkälä to the Russian border and further into Russia. Although this connection has been disconnected in recent years, it demonstrates that the area has historically transmitted substantial amounts of power. The new 300 MW load does not significantly increase the overall load on the regional 400 kV system compared to the past years.  

In practice, this new point load of 300 MW can be connected to the existing 400 kV transmission system in the Lappeenranta area via the Yllikkälä substation. The available transmission capacity is sufficient to cover both current consumption and the additional load from the data center. As a result, the new data center will not compromise or endanger the region’s electricity supply.

Source: Jarmo Partanen, Professor Emeritus of Electrical Engineering, LUT University 
 
Does the data center affect electricity prices in the Lappeenranta region?  

Data center increases overall electricity demand, but the price of electricity is determined by supply and demand across the entire Nordic electricity market. The impact of a single data center on energy prices is therefore only a small part of larger market.  

In general, what comes to the electricity distribution services and their pricing, the more electricity consumption and customers there are in a distribution network, the more widely the costs are shared. This may be reflected on how electricity distribution charges develop.

Source: Jussi Selenius, CEO, Lappeenrannan Energiaverkot Oy