Understanding legislation that guides sustainable data centre development in Finland

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master_Maunula_Ida_2025.pdf (863.48 KB)

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School of Engineering | Master's thesis
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2025-09-28

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Urban Studies and Planning in Real Estate Economics

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Master's Programme in Urban Studies and Planning

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en

Pages

83

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Abstract

Data centres are critical infrastructure that are a key component of the digital age. However, data centres are also large energy consumers, accounting for an estimated 2,7% of total electricity demand in the European Union. The increasing need for data storage and processing, training artificial intelligence and machine learning models, and the digitalisation of services across industries has resulted in growing demand for data centres globally. At the same time, a growing body of legislation has been introduced to encourage the use of sustainable practices in the data centre industry. Finland is recognized as a frontrunner in data centre sustainability and thereby provides an ideal foundation for exploring the relationship between sustainable data centre development and the legislative landscape that surrounds it. The aim of this study is twofold - to develop a comprehensive understanding of the different legal instruments guiding sustainable data centre development in Finland and to explore the various opportunities and challenges that data centre developers face when applying the legislation in practice. The research questions were addressed using a mixed-method approach with both theoretical and empirical components. Legal dogmatic analysis was used to interpret both Finnish statutory law and EU directives and regulations. Furthermore, the case studies of Google´s Hamina data centre development project and Microsoft´s Espoo data centre development project demonstrated the use of different sustainability strategies and showed how the legislation impacts real-world projects, especially regarding permitting. Finally, three semi-structured expert interviews were conducted to gain insights into the opportunities and challenges brought forward by the different legal instruments. The results demonstrate that sustainable practices for data centre development are widely mandated across the legal instruments analysed. Energy efficiency standards, reporting frameworks, and renewable energy integration can be seen as some of the most significant mandates for data centre development from EU legislation. The role of national legislation is most apparent in zoning outcomes and permitting processes. Finally, the interviewees saw notable opportunities in Finland´s climate advantages that facilitate the use of sustainable practices, efficient communication with authorities, and predictable permitting processes. Whereas challenges were identified in regulatory instability and delays caused by zoning and EIA procedures. Overall, this research can be used by industry professionals, academics and urban planners as a resource to gain insights into the legislative landscape of sustainable data centre development in Finland.

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Supervisor

Ekroos, Ari

Thesis advisor

Ekroos, Ari

Keywords

data centre development, sustainable data centres, legislation, permitting, sustainable development, EU legislation

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https://urn.fi/URN:NBN:fi:aalto-202510218412

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[dipl] Insinööritieteiden korkeakoulu / ENG