TikTok, owned by China-based Bytedance, is planning to build its first data centre in Finland, with an investment of €1bn ($1.14bn), reported Reuters citing a company spokesman.

The move marks a step in the company’s efforts to store European user data within the continent.

It is also seen as part of TikTok’s strategy to address concerns about the potential for the Chinese government to access data from European citizens using the platform.

The company’s spokesman, while confirming the investment, refrained from providing further details, the report said.  

At the time of reporting, Finland’s Prime Minister’s office had not responded to Reuter’s requests for comment on the development.

TikTok has faced scrutiny from lawmakers in Europe and the US.

The company launched new data security initiative, “Project Clover”, in 2023. The initiative includes a commitment to invest €12bn over the next decade.

This initiative comes as several countries, the European Parliament, the European Commission, and others have implemented bans on TikTok on staff phones, citing privacy concerns.

The US government has also threatened to ban the app unless TikTok’s US operations are divested, citing national security reasons.

TikTok has criticised these bans as misguided, attributing them to fundamental misconceptions about the platform’s data handling practices.

According to TikTok’s, European user data is currently stored in a dedicated European data enclave, with data centres located in Norway, Ireland, and the US.

The first data centre under Project Clover, located in Norway, became fully operational this month.

With over 175 million users in Europe, TikTok plans to launch additional data centres in the coming years, as per sources.

In March 2025, Reuters reported that TikTok Shop, the e-commerce platform of the social media app TikTok, said it plans to expand its European presence by launching in France, Germany, and Italy.