FINLAND Trends and Developments Contributed by: Ismo Hentula, Saga Lamminsivu and Lauri Koskenniemi, Procopé & Hornborg Attorneys Ltd
combined heat and power plants (CHP), the shift to weather-dependent systems has raised the question of whether the current mix of electricity production forms is sufficient to cover the peak consumption even in the harshest conditions of Finnish mid-winter. The developments have also contributed to the increasing popularity of nuclear power as an alternative to the fossil fuels – a trajectory rather unlikely to have been foreseen at the beginning of the 21st century. Changes in the information society have manifested in an exponential growth in the quantity and significance of data. An increasingly large proportion of society’s services are provided electronically, a significant share of data has moved online, and AI technologies require substantial and effective computing power to func- tion, all of which lead to greater energy consump- tion. These changes have inevitably been reflected in energy markets through, for example, data centre projects, growing battery capacity, and discussions on the adequacy of electricity network capacity. Several factors make Finland an attractive target for the establishment of data centres, relating amongst other things to social stability, geography, relatively light regulation, and energy prices that remain com- petitive by European standards. Finland is a stable Nordic country with a well-maintained power grid. Its northern location, cooler climate, and water resourc- es directly sit well with data centres’ cooling require- ments and energy consumption. The benefits of data centres are seen not only in their significance as local investments, bringing some tax revenues and potential jobs to regions, but above all, as a means of attracting further high-technology pro- jects to Finland. At the same time, critical discussion is under way on whether data centres should be regu- lated more comprehensively, in particular as regards their societal value relative to their energy consump- tion. The question is how to ensure that data centre projects intended to attract technology investments genuinely serve that objective, rather than simply becoming cheap, energy-intensive platforms for processing data. Certain regulatory obligations are already in place relating, for example, to reporting and waste heat utilisation obligations at EU level and land use planning, construction, and environmental impact
assessment obligations at national level. Otherwise, the question of how the potential of data centres can be utilised more comprehensively to meet the needs of society remains unanswered. Alongside data centres, a considerable number of bat- tery storage facilities have also been established in Finland in recent years. The growth in battery capac- ity has likely contributed to improving the functioning of the reserve markets maintained by the transmis - sion system operator Fingrid. Growing battery capac- ity helps to balance the electricity grid and provides short-term reserve capacity in various production shortage situations. However, battery storage facili- ties may face the challenge of being located at a dis- tance from power generation plants, which in turn places additional strain on the transmission network. As a solution to this challenge, Fingrid has proposed, among other measures, streamlining the permit pro- cedure for operators that locate a battery storage facility close to the relevant electricity generation site. Power Generation Through Small Modular Reactors Nuclear power is the most significant source of energy in Finland. There are five nuclear power plants in com- mercial operation. In 2024, 38% of all electricity was produced by nuclear power, and its importance as a means of producing energy is projected to grow. Should electricity prices rise, thereby increasing the economic incentives for the construction of new facili- ties for energy production, opportunities and market conditions for the construction of new nuclear power plants may also open up. The currently rather stagnant development of other new generation capacity, such as onshore and even offshore wind power, may also benefit from renewed interest when electricity price levels offer sufficient investment return potential. The construction and commissioning of nuclear power plants in Finland is subject to substantial regulation. The central legislative framework is the Nuclear Energy Act (990/1987), which is currently being reformed. The government’s proposal for a new Nuclear Energy Act (HE 24/2026) was submitted to Parliament in March 2026. In addition to the Nuclear Energy Act, the opera- tion of power plants is also governed by the Radia- tion and Nuclear Safety Authority’s (STUK) detailed
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