The swift growth of data centers in Finland might lead to a 10% increase in electricity prices by 2030.

A significant rise in data center construction in Finland may lead to a 10% increase in average annual electricity prices over the next five years, as indicated by a recent government-commissioned study.

According to Yle News, the study by consulting firm AFRY evaluated the economic and energy implications of proposed data center projects amid ongoing political discussions.

The study found that if data center electricity consumption reaches around 2,500 megawatts by 2030, more than eight times the current usage, electricity prices will rise even if power production grows at a similar pace.

AFRY estimated that during about 100 hours each year, demand from data centers could cause hourly electricity prices to exceed 50 cents per kilowatt-hour, with peaks up to 90 cents for around 30 hours, resulting in an overall annual price increase of approximately 10%.

These findings have led to political attention. Finance Minister Riikka Purra expressed concerns in parliament that large projects could escalate electricity prices, while Prime Minister Petteri Orpo mentioned in Kauppalehti that the government is looking into tax incentives, affirming the need for data centers in Finland.

Currently, Finland has data centers consuming roughly 300 MW of power, but interest from international tech companies has surged, partly due to the country's having the second-lowest electricity prices in Europe last year.

AFRY noted that price hikes could be mitigated if operators agree to reduce consumption during peak times or invest in their own energy solutions, like batteries or backup generators.