Exceptional data center investment in Lappeenranta – Nebius to construct AI factory to Pajarila

The Dutch AI cloud company Nebius has just announced the construction of a new, and one of the Europe’s largest AI factories in the City of Lappeenranta. This is a multi-billion-euro project, and construction works will begin immediately.

The data center, implemented by the Nebius and the Finnish data center project developer Polarnode, range up to the capacity of approximately 310 megawatts. The data center will be built on a 41-hectare industrial estate located in Pajarila, south side of the highway 6. The site has been leased from the City of Lappeenranta.

The operator of the data center is Nebius. The project has been developed in cooperation with the City of Lappeenranta and it basis on the cooperation agreement (yhteistoimintasopimus) between the city and Polarnode, signed in 2025.

According to City of Lappeenranta Mayor Mr. Tuomo Sallinen this is very significant single industrial scale investment by Finnish and European standards.

– The data center will enhance vitality and employment impacts on the South Karelia as a whole, and the major investment will increase the attractiveness of Lappeenranta and its surrounding area both nationally and internationally. 

– With the data center, Lappeenranta will top up the forefront of the Finnish AI ecosystem. In addition, an investment of this magnitude will regain faith and credibility to the entire Eastern Finland region.

The Chair of the City Board, Mrs. Sanna Koskenranta, and the Chair of the City Council, Mr. Joonas Grönlund, emphasize that the investment strengthens Lappeenranta's position as an attractive and developing operating environment.

– Lappeenranta has a significant role as the driving force of the region, and the whole of South-East Finland, showing that the region has potential and that it is worth investing and settling in. I hope this investment will encourage and pave the way for other operators, says Koskenranta.

– The city has proactively zoned business-friendly areas in advance, enabling even large-scale projects to move forward swiftly. Public officials and decision-makers have found strong alignment, making Lappeenranta an easy and attractive place to invest, Grönlund emphasizes.

Lappeenranta facilities are in good condition

Founder and CEO of Nebius Mr. Arkady Volozh celebrates the coming expand of the company’s presence in Finland, where it has built for many years already.

–  Lappeenranta represents a significant addition to our global AI infrastructure build-out and will make a significant contribution to achieving our capacity goals.

Chair of Polarnode Board, Mr. Mikko Toivanen, highlights the exceptional size of the project and wonderful news for the entire South-East Finland.

–  It is great that the first data center project in Lappeenranta and its surrounding areas is progressing into the construction phase, and Europe's most significant AI infrastructure company has been hired to operate the center.

– Substantial technological and employment impacts generated by this investment extend not only to the data center itself, but also to the development of the AI industry and the companies that utilize it, to the academic community in Lappeenranta, and to the entire surrounding infrastructure. The major investment is of course also significant at a national level.

According to Mr. Toivanen, the Lappeenranta project is a great example of the strengths of all of Finland as an operating environment for data centers.

– In Lappeenranta, nearby higher educational institutions develop top experts for the needs of the data center and related industries, there is a strong network connection solution, access to the district heating network and a ready-made plan enabling construction. In addition, our cooperation with the City of Lappeenranta has been very smooth, Toivanen says.

Construction work to start immediately – project has substantial employment impacts

Construction of the data center will begin immediately, and the construction will take several years and proceed in phases. The phased approach will enable data center operations to begin even before the entire complex is completed. The first phase is scheduled for completion in 2027.

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

The investment covers construction, technology, infrastructure and energy solutions. In addition, the project will bring major economic impacts to the region: it will increase demand for local services, strengthen business activities and increase tax revenues.

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.

The construction phase offers a wide range of opportunities for local companies, for example in contracting, logistics, material deliveries and various support services. The project aims to utilize local expertise as much as possible.

The annual rent for the plot is a total of 358,424 euros. The annual rent is tied to the cost-of-living index.

Cooperation with local educational institutions

Nebius is actively exploring partnerships with local academic institutions via Nebius Academy to upskill local residents in AI expertise, develop the talent pipeline, and support long-term innovation and economic development in the region.

According to LUT University Rector Mr. Juha-Matti Saksa, the 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.

Sustainability first

The data center project has also taken environmental factors into account, and sustainability is a key part of the data center design. The model is benchmarked with Mäntsälä, where Nebius' data center is among the most energy-efficient in the world. The servers are cooled by a closed liquid circulation system, which does not require water from local water resources and minimizes water consumption. Electricity is mainly produced from low-carbon energy sources, which accounted for approximately 94 percent in 2025.

The data center generates waste heat as a by-product, which can be used for district heating and industrial processes, for example. The waste heat produced by the Pajarila data center could cover the summer heat needs of the Lappeenranta district heating network.

– We aim to find the most cost-effective and appropriate solutions for the use of waste heat. The options are still being settled, and the details will be clarified later, says Mr. Arto Nikkanen, CEO of Lappeenranta Energia.

The extensive forest area in the plot, which serves as a transit route for flying squirrels, must be preserved according to the conditions set by the city. The city also requires that the use of coolers during the summer must not cause noise pollution to the near area.

Comprehensive preparation process

The data center project has been preceded by comprehensive preparation. The city has conducted the necessary background investigations into the matter independently and in cooperation with various authorities.

Special attention has been paid to security issues, also from a national defence perspective, under the leadership of the city's security and preparedness advisor, Doctor of Military Sciences, Col. (ret.) Mr. Janne Mäkitalo.

The city has communicated with the relevant ministries in Finland, and they are kept informed of the project proceedings.

Mr. Sallinen highlights the constructive cooperation with Polarnode and the pro-active implementation of the city strategy, which have enabled the investment.

– I wish to thank the city officials and politicians who participated in the preparation, and enabled smooth complete of the necessary decisions, starting from the cooperation agreement, the lease of plots, and building permits.

The City of Lappeenranta will inform of the data center project accordingly. The website lappeenranta.fi/datacenter collects information of the project background as well as the upcoming development phases. Frequently Ask Questions section and the template to submit new questions will also be available.

Contacts:

Tuomo Sallinen, Mayor, City of Lappeenranta
Tel. +358 40 624 1422, tuomo.sallinen@lappeenranta.fi

Mikko Toivanen, Chair of the Board, Polarnode Oy
Tel. +358 500 595 471, mikko.toivanen@polarnode.fi 

Nebius
media@nebius.com

Media contacts for the City of Lappeenranta:
Päivi Pietiläinen, Liaison Manager
Tel. +358 40 770 2797, paivi.pietilainen@lappeenranta.fi