HELSINKI, Sept. 1 (Xinhua) -- The Finnish government has decided to drop plans for new public financial support for data centers, Finance Minister Riikka Purra said on Tuesday following coalition talks on the 2027 state budget.
Public support for data centers in Finland has mainly taken the form of tax relief. A preferential electricity tax rate for data centers ended in June, and the government had planned to replace it with a new support scheme in the 2027 budget.
Purra said the new support was no longer necessary because Finland's attractiveness as a destination for data center investment did not depend on tax subsidies.
Finnish national broadcaster Yle reported that the previous tax support cost about 47 million euros (54.5 million U.S. dollars) annually, while the proposed replacement scheme would have cost around 30 million euros (34.8 million dollars) a year.
The decision comes amid growing public debate over Finland's rapid expansion of data centers. Dozens are currently under construction, while around 100 more are being planned, according to media reports.
The boom has raised concerns about pressure on the country's electricity grid and its potential impact on electricity prices.
Prime Minister Petteri Orpo said on Tuesday that Finland remained "a very attractive country" for data centers, but added that sufficient electricity supply also had to be taken into account. ■