Permits and procedures for data centre projects

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Read also our article "Status of data centre projects in Finland", where we discuss, among other things, Finland's role as a location for data centre projects, taxation and the preconditions and procedures relating to the location of data centres.

The Act on the Environmental Impact Assessment Procedure (so called EIA Act 252/2017) applies to projects that may have significant adverse effects on the environment. A data centre project requires an EIA procedure if the maximum fuel capacity of the boiler or power plant for energy production is 300 megawatts or more, or if the extraction of soil and aggregates exceeds 200,000 cubic metres per year. Data centre projects may also require an EIA procedure if the project requires the implementation of a large-scale back-up power system. 

An environmental impact assessment report (EIA report) and the reasoned conclusion (i.e. the conclusion of the authority on the significant environmental effects of the project) issued by the authority are prerequisites for the granting of permits for the project, such as environmental and construction permits. The EIA report and the reasoned conclusion are taken into account by the permitting authority in its assessment of the permit. However, the EIA procedure is not an auhtorisation procedure, and there is no right of appeal against either the EIA programme statement or the reasoned conclusion. 

The EIA procedure is often time-consuming and, at best, can be completed within approximately one year.

Environmental permit

According to the Environmental Protection Act (527/2014), an environmental permit is required for activities that pose a risk of pollution. A permit is required for data centre operations if the total fuel capacity of the back-up generators exceeds 50 MW or if more than 100 m³ of fuel is stored in the data centre. In addition, an environmental permit may be required if the extraction project involves quarrying or stone crushing, in which case a permit for the extraction of soil alone is not sufficient. 

An application for an environmental permit may be prepared and submitted during or shortly after the EIA procedure, but the permit cannot be granted until the EIA report has been completed, and the authority has given its reasoned conclusion.

Water permit

A permit is required under the Water Act (587/2011) if the data centre project may change the status, depth, water level or flow, the shoreline or aquatic environment, or the quality or quantity of groundwater. The need for a water permit will be assessed as the project planning progresses, particularly with regard to springs and groundwater.

For data centre projects, a water permit may need to be assessed if the project is located in a groundwater area or if the cooling of the project is achieved by exploiting water bodies, for example by pumping cooling water from a nearby lake or river.  

One-stop-shop principle

On 18 June 2025, Parliament adopted the Act on the processing of certain environmental matters by the Finnish Supervisory Agency (823/2025). The aim of the Act is to streamline and harmonise environmental permitting and monitoring tasks (including permitting processes for data centre projects) through a one-stop-shop service model. However, the reform does not change the conditions for issuing permits. 

The Finnish Supervisory Agency will centralise the tasks of Valvira, most of the tasks of the Regional State Administrative Agencies and the environmental tasks of the ELY Centres (The Centres for Economic Development, Transport and the Environment). The new agency will start operating on 1 January 2026, at which point the existing agencies will be dissolved. 

In future, projects requiring several permits will more often result in a single permit decision and the possibility of appeal. In a single permit procedure, the Finnish Supervisory Agency can process and decide on the following for the same project or activity: 1) permit applications under the Environmental Protection Act, 2) permit applications under the Water Act and 3) applications for a derogation under Section 66 or 83 of the Nature Conservation Act. In addition, certain permits under the Land Extraction Act, which fall within the competence of the Finnish Supervisory Agency, are also subject to joint processing. 

Some permit applications under The Safety and Chemicals Agency’s (Tukes) jurisdiction, such as chemical permits, can also be coordinated with permit applications under the Environmental Protection Act or the Water Act processed by the Finnish Supervisory Agency at the request of the applicant. 

Co-processing may, however, be waived if it is deemed unnecessary for a specific reason. In the case of applications for derogations under the Nature Conservation Act, the joint procedure may also be waived if separate processing is justified. 

Building permit

The construction of buildings and structures requires a building permit under the Building Act (751/2023), including data centre projects. The granting of a construction permit is subject to the completion of the EIA procedure and the attachment of the EIA report and the reasoned conclusion of the contact authority to the application for a construction permit.  

In addition, the zoning plan must permit the implementation of the data centre project in order for a building permit to be granted. 

Other permits 

Other permits and notifications may also be required for the development and construction of the data centre project. Data centres often store hazardous chemicals, such as fuels and refrigerants, which may require a chemical safety permit from the Finnish Safety and Chemicals Agency. The need for a permit depends on the hazardous nature and quantity of the chemicals. Additionally, the data centre site must comply with land-use planning and safety requirements.

The project may also require an emission permit and monitoring plan under the Emissions Trading Act (1270/2023). 

In addition, the project may require other permits, such as derogation under the Nature Conservation Act (9/2023), which allows derogation from the provisions on conservation, or a permit for the extraction of earth material. 

Conclusions

Data centre projects are long and complex processes. They require compliance with a number of laws and permits, and project implementation may be delayed, in particular due to planning changes and the EIA procedure. However, with the establishment of the Finnish Supervisory Agency, the one-stop-shop model for environmental matters is expected to facilitate and accelerate the permitting process for data centre projects starting in early 2026.