Government safeguards Finland’s competitiveness in attracting data centre investments

The electricity tax on power used in data centres will move from the lower electricity tax category II to the general category I as of 1 July 2026. The general category tax is 2.24 cents per kilowatt-hour, compared to 0.05 cents in the lower category. This means the change will increase the electricity tax on data centres by 2.19 cents per kilowatt-hour. The reform will raise central government electricity tax revenue by EUR 47 million annually at 2026 levels. Because the change takes effect on 1 July, the additional revenue in 2026 will be about half that amount.

The Government’s aim is to foster competitiveness through the data economy and digitalisation. Digitalisation, fast data connections and technological development can, when used effectively, significantly improve people’s quality of life, the competitiveness of businesses and the availability of labour. They can also make public administration more efficient. The Government seeks to harness the opportunities offered by new technologies and digitalisation, as well as data-driven value creation and productivity growth. 

To ensure Finland remains competitive and attracts data centre investments that benefit the national economy and society as a whole, the Government will prepare a subsidy scheme based on the recommendations of a national roadmap. The scheme's fiscal impact will be capped at the current level of electricity tax subsidy.

The Government will decide on the main points of the preparation as soon as possible after the roadmap is completed. The aim is for the subsidy scheme to take effect in autumn 2026.

On 23 October 2025, the Government decided to submit a proposal to Parliament for an act repealing certain provisions of the Act on Excise Duty on Electricity and Certain Fuels. This proposal concerns the 2026 budget proposal and is intended for consideration in  connection with it. The proposed act is scheduled to enter into force on 1 July 2026.

Inquiries:  Mikko Martikkala, Special Adviser to the Prime Minister in Economic Policy, +358 40 708 3932
[email protected]