The commercial use of the Baltic Sea data cable expected to begin in Q2 2016

With the new Baltic Sea data cable expected to be up and running in Q2 this year, Finland has taken another step forward in digitalization. “When it comes to data center locations, now is the time for both Industry 4.0 players and European SMEs to really start exploring their options,” says Jukka-Pekka Joensuu, the Executive Vice President of Cinia Group.

The laying of the new, ultrafast submarine data cable between Germany and Finland, which has now been completed, has increased Finland’s lead as one of the world’s most wanted data center locations.

“The new digital highway offers the shortest and fastest route to connect Central Europe with optimal data center locations in Northern Europe as well as business opportunities in Eastern Europe and Asia, further improving Finland’s position as a gateway between East and West,” says Alpo Akujärvi, Head of Industry at Finpro’s Invest in Finland.

“We are right on schedule and the connection between Central and North European countries will soon be a reality. The connection is planned to be commercially available in Q2 2016,” says Jukka-Pekka Joensuu, Executive Vice President of the Cinia Group, a Finland-based provider of intelligent connectivity and transmission services. “In the future, we will continue to develop the European data center market systematically. One important aspect of this is supporting connections between Asia and Europe. This will increase the competitiveness of all of Europe.”

The recent agreement with SSH Communications Security, the security protocol technology leader, ensures that Cinia’s critical infrastructure and data networks fulfill today’s exceptionally high security requirements and that C-Lion1 customers can acquire all critical data security components directly from Cinia. The agreement also includes the opportunity to utilize SSH’s next generation firewall solution as part of Cinia’s connectivity services.

Connectivity increases the competitiveness of all of Europe

“As the Industrial Internet and digitalization are changing the world rapidly, the players have to decide on their data transportation and storage strategies. As a rule of thumb, all the applications that can withstand a delay of a mere 20 milliseconds, should be located in areas where it is truly cost-effective and sustainable to store data,” Joensuu says. “Finland is one of the few countries that fulfills all these criteria. It enjoys one of the world’s best infrastructures and high connectivity while its natural conditions, inexpensive energy pricing and favorable taxation make it almost 50% cheaper to locate a data center in Finland compared to other European countries.”

According to Joensuu, one aspect of the competitiveness of European countries is whether European SMEs are able to pursue digitalization in a cost-effective and sustainable way. “Thanks to favorable conditions and the constantly growing interest of data center players, hosting companies such as Hetzner Online have already decided to offer viable solutions for data storage in Finland. At the same time, we are developing cost-effective data storage models even further. That gives Europe a real opportunity to make a difference and renew itself.”

Endless possibilities

With 60 large data centers expected to be built in Western Europe by 2020, Finland’s opportunities in the data center business are immense. One of Finland’s competitive advantages is taxation: The government decision to lower the electricity tax rate paid by data centers with a total power usage of at least 5 MW has further increased Finland’s competitive advantage as a global data center location. As the energy tax for data centers is now at the same level as the industrial electricity tax, the total electricity price in Finland is now clearly the most competitive in Northern Europe.

Finland is taking part in the WHD.global on 15–17 March. You will find us at booth G11.

For more information, please contact:

Alpo Akujärvi, Head of Industry, Invest in Finland, +358 294 695 271,

About Invest in Finland:

Invest in Finland is the government agency promoting foreign investments (FDI) into Finland. We assist international companies in finding business opportunities in Finland and provide all the relevant information and guidance required to establish a business in Finland. We are a unit of Finpro, an organisation focused on accelerating the internationalization of Finnish companies. Finpro’s worldwide network is an integral part of Invest in Finland’s work abroad. Our activities are steered by the government’s economic and innovation policies, and are funded by the Ministry of Employment and the Economy.

Investinfinland.fi