Finland is at a pivotal moment, juggling its ambitious climate goals with a booming digital economy. Two key reports from late November 2025—one by Carbon Gap and Sweco Finland, and another on data centre development—highlight the challenges and opportunities in this Nordic nation. As Finland strives to meet its 2035 climate targets and become a leader in green technology, it must address both carbon removal strategies and the growth of its digital infrastructure.
The Carbon Gap report, released on November 27, warns that without significant investment in carbon dioxide removal (CDR), Finland is unlikely to reach its climate ambitions. This document is the first in a series assessing carbon removal readiness across Europe. It calls for immediate policy and funding to boost both natural and engineered CDR solutions. The findings have stirred discussions among policymakers, businesses, and citizens about what urgent changes are necessary.
The report outlines three scenarios for Finland’s path to its 2035 goals. It focuses on strategies like land management, bioenergy with carbon capture and storage (BECCS), and enhanced rock weathering. While these options present hopeful outcomes, they also stress the risks of delaying action. The message is unmistakable: the time for half-measures has passed.
Public opinion is shifting too. Interviews show that more Finns support CDR solutions, especially nature-based methods. Politicians are also discussing economic incentives for BECCS as part of the upcoming Climate and Energy Strategy, reflecting a growing consensus that bold actions are essential. The report notes that Finland has the resources to deploy numerous CDR projects, but that policy action is crucial to attract investment and foster CO2 infrastructure.
On the other hand, Finland’s digital economy continues to transform rapidly. A recent national roadmap outlines advantages for developing data centres, highlighting the country’s cool climate, solid infrastructure, and affordable, fossil-free energy. As of late November, there are around 30 data centres in Finland, a number expected to grow significantly due to the rise of artificial intelligence and cloud services.
These data centres are more than just technology hubs; they are vital to the economy. Finnish Prime Minister Petteri Orpo stated that these centres support digitalization and contribute to economic stability. The government is keen on attracting investments that can boost jobs, tax income, and innovation across the country.
However, the rapid rise of data centres is not without criticism. Veli-Matti Mattila, former CEO of Elisa, urges the government to reduce electricity taxes and simplify permission processes to attract investors. He argues that while foreign companies setting up in Finland can drive growth, it’s essential they register their activities for transparency. This is especially important as internationally known brands like TikTok plan to build new centres in Finland.
Energy consumption poses another challenge. Data centres are notorious for high electricity demands and the heat they generate. Banker Björn Wahlroos pointed out that Finland’s northern climate suits data centres but high energy costs can deter investment. He stresses the need for financial incentives and reliable energy sources to attract international interest.
In response to these energy concerns, the Finnish government is focusing on expanding electricity production from renewable sources. Under Prime Minister Orpo, there’s a commitment to ramp up new capacity, promote cleantech options, and support various sectors in transitioning to greener practices. Efforts are underway to connect data centres to the electricity grid more effectively and utilize their excess heat for district heating, tackling emissions and improving efficiency.
Nuclear energy is making a comeback in discussions about Finland’s energy future. The government plans to approve new nuclear projects, including small modular reactors (SMRs), to maintain energy security. The past cancellation of the Hanhikivi nuclear project looms large, but the drive to reduce dependence on Russian energy fuels renewed resolve.
In Helsinki, there’s interest in small nuclear plants as a stable energy source. Public dialogues are ongoing, weighing the environmental implications and safety concerns. Residents have expressed mixed feelings, but the city is keen on integrating this energy strategy into its vision for a carbon-neutral future.
Meanwhile, projects in cities like Kajaani are exploring ways to recycle the heat generated by data centres. Collaborations between schools, local businesses, and research institutes aim to turn this heat into resources for greenhouses, fish farms, and other community projects. This innovative approach could create sustainable energy solutions while driving regional growth.
The Nordic region is positioning itself as a leader in renewable energy. Energy ministers recently agreed on the need to expand grid networks and boost production to ensure the region’s energy security, even in the challenging Arctic climate.
Finland’s dual pursuit of climate leadership and digital advancement holds both promise and challenges. With public backing and policy momentum, Finland has the potential to lead in carbon removal and digital infrastructure. But as highlighted in both critical reports, success hinges on immediate, coordinated action before this opportunity slips away.
