Finland is going through important times in terms of attracting investments in the green transition.
Our country has managed to attract several investments thanks to its predictable operating environment and active activities that bring together different actors. Good examples of this are significant data center investments, which have increased economic activity in areas where there has otherwise been little larger-scale business activity. There is still significant potential in the market for green transition projects, but the question is whether Finland is still an attractive option for international investors.
Large projects are particularly important for the vitality of Finland as a whole. The employment impacts during construction, maintenance and the entire project life cycle are significant. A concrete example of this is the data center project in Kajaani, where we are building a large-scale data center for an international player. Overall, the project will employ approximately 250 people during the construction period and has many positive multiplier effects for local subcontractors and service providers.
When the project is completed next year, it will employ technical, institutional and support staff. It will also work with the local community, including local educational institutions and other partners. Overall, there is a significant amount of investment in the design phase.
We have noted with concern how Finland's previously predictable operating environment and legislation have become more volatile, especially from the perspective of international investors. The ever-evolving debate about possible changes to, for example, the Climate Act or the Electricity Act, and decisions on tax bracket changes, are pushing Finland's green transition out of the investment debate.
For example, the Finnish Data Center Association FDCA estimates that the proposed change in the electricity tax category for data centers would jeopardize ten billion euros worth of projects in the planning stage in Finland. Several projects have already been suspended due to increased uncertainty. However, we cannot afford to sacrifice our long-term goals for shorter-term budget adjustments.
International green transition investments have given the construction sector, which is significant to the Finnish economy, the opportunity to demonstrate its capabilities in the field of industrial construction and in understanding the needs and processes of international customers. At the same time, we have been able to demonstrate unique construction operating models to international actors, which significantly accelerate the implementation of expensive investments and improve the responsibility of the project. Finnish construction expertise has been successfully exported abroad in the past - now this experience and expertise should be used as a tool and import advantage to attract investments to Finland.
However, the construction industry cannot do this alone, but as a small country, Finland must build even closer networks and create better and longer-term investment conditions for international actors on the part of decision-makers, for example by ensuring predictable legislation and agile investment conditions. It is in everyone's interest that we also invest in measures that ensure companies have the expertise, financing, smooth public services such as investment permitting processes, and functional infrastructure in terms of transport, energy, and digitalization.
Green transition investments are vital, above all, in mitigating climate change, to which Finnish construction companies and other sectors have a lot to contribute. We will ensure that Finland remains an attractive option for investment decisions, also in terms of the operating environment.
Heikki Vuorenmaa
CEO of YIT Corporation
Vice Chairman of the Board of the Finnish Construction Industry Federation
The article was published in the Debate column of Kauppalehti on April 17.4.2025, XNUMX.
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