Finland’s Government proposal to remove energy tax breaks for the Datacentres has caused concern for the industry’s investors.
Finland’s Ministry of Finance is preparing changes to the Energy Taxation Act as part of the 2026 state budget. Under the plan, the preferential tax treatment enjoyed by datacentres would be abolished. Officials argue the reform is part of a broader overhaul intended to ensure consistency across all major sectors of the economy.
Finland’s Finance Minister Riikka Purra informed parliament in August that the government aims to finalise the tax reform package by the end of October. According to MoF figures, the energy tax breaks granted to datacentres are forecast to cost the state around €50m in 2025.
Legally, the government could end the tax concessions simply by amending the current Energy Taxation Act. However, such a move carries significant risks. Policymakers are aware that altering the cost structure for data center operators could have unintended consequences for the industry and its future in Finland.
Critics warn that eliminating the tax benefits may not only deter fresh investment in Finnish data center projects but also slow down expansion plans from companies already established in the country. With other Nordic nations continuing to offer favourable conditions, Finland faces the prospect of losing ground in the competition to host energy-intensive digital infrastructure.