• EcoDataCentre raises €600m to expand AI data centres in Sweden.
• Funds will finish construction at Falun and start at Borlänge.
• Capacity to reach up to 400 MW.

EcoDataCentre has secured €600 million ($703 million) in debt financing to expand its data centres in Sweden, a country fast becoming a key hub for AI infrastructure.

The financing, underwritten by Deutsche Bank’s Private Credit and Infrastructure unit, will be sold to other investors later, according to Chief Executive Officer Peter Michelson. The funds will support the construction of large-scale sites in Falun and Borlänge, both located north of Stockholm. The facilities are being built with AI and other data-heavy workloads in mind.

The latest round brings the company’s fundraising total to €1.8 billion since last year, with support from its parent company, Areim AB. EcoDataCentre’s client list includes CoreWeave, BMW, and several global cloud providers.

The money will go toward completing the Falun data centre by 2027, while also kicking off work at the larger Borlänge site. Falun is already up and running and is expected to reach 68 megawatts of capacity once finished. Borlänge, acquired last year from Stora Enso, is planned to deliver between 360 and 400 megawatts – more than four times the size of Falun.

Michelson said the financing gives the company enough resources for the next two to three years. “Sweden has unique conditions with green, affordable electricity, land for expansion and an engineering DNA,” he said. These qualities, he said, make the country a natural choice for data centre growth.

Sweden’s growing role in AI infrastructure

Sweden has drawn heavy investment from both domestic and international players, including Nvidia, the Wallenberg family, and Brookfield Asset Management. Tech giants like Microsoft, Meta, and Alphabet have also expanded in the country, attracted by its stable power grid and strong network connectivity.

The Nordic climate and abundant renewable energy makes Sweden an attractive destination for companies wishing to run energy-intensive AI operations. Cooling costs are lower, land is available, and the national power supply is built on a mix of hydropower, wind, and nuclear energy.

Since opening its first facility in 2019, EcoDataCentre has positioned itself among this wave of expansion. Alongside BMW, its clients include the German start-up DeepL, known for its translation software, and CoreWeave, a specialised cloud provider.

Last year, EcoDataCentre and CoreWeave partnered to create one of Europe’s largest AI training clusters. The company also hosts a Nvidia Blackwell SuperPod for DeepL, giving it access to advanced chips that are in high demand for training and running large AI models.

Expansion plans and financial outlook

While EcoDataCentre has raised substantial funding, Michelson said the company is not considering an initial public offering (IPO) at this stage. “An IPO could be an option if capital needs demand it, but not now,” he said. For the time being, the focus remains on completing existing projects and scaling operations.

The fresh financing ensures the company can sustain its build-out for at least the next 24 to 36 months. By then, the Falun site should be complete, and Borlänge well underway. Once online, the Borlänge facility would rank among the largest AI-focused data centres in Europe, putting Sweden in direct competition with North America and Asia.

A broader European push for AI data centres

The rapid growth of data centres in Sweden reflects a wider European ambition to strengthen its role in advanced computing. These types of investments aim to fulfil AI demand and create jobs and modernise energy infrastructure.

As AI becomes more integrated into industries ranging from car manufacturing to language translation, the demand for reliable, scalable computing power is only expected to rise. Sweden’s expanding network of data centres may help Europe close the gap with Silicon Valley, offering the region a stronger foundation in the global race for digital capacity.

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