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Finland’s lower cooling costs for data centers pulls in more investment

As Finland struggles with Nokia’s woes with the company announcing it will sell its handset business to Microsoft and the overall economy due to contract by 0.5 percent this year, Finland is on a full court press to attract as much new IT spending as possible. So it was pretty great news that Google will invest over $600 million to expand its Hamina data center. Microsoft also announced in September that it would invest 250 million Euros in a Finish data center.

Finland’s cool climate is proving attractive to IT giants as it lowers cooling costs and Scandinavia is still close enough to the European mainland so that latency isn’t a problem. Mobile video demand continues to grow and Google, via Youtube, has enormous amounts of data to serve to that market. Add to these facts that Finland is going out of its way to lower taxes for Google and others, and you have a fairly attractive scenario.

Google’s capital expenditures are also proving to be massive, rising to $2.29 billion in Q3 from $1.6 billion the previous quarter as the company lays out cash for equipment, data centers and real estate. It’s truly becoming a race fought among IT giants building data center infrastructure and then figuring out more and more services to sell upon that infrastructure.