A planned data center in Kouvola, Finland, has sparked security concerns following revelations of Chinese ownership and its potential connection to TikTok. The project, initially portrayed as Finnish, has shifted hands to Chinese investors, notably Huang Wei, CEO of GDS Holdings, a prominent Chinese data infrastructure firm listed on the Hong Kong Stock Exchange.
Hyperco, the company overseeing the Kouvola data center, was founded by Finnish entrepreneurs but was later acquired by Dubai-based billionaire Hussain Sajwan. Chinese involvement in the project began in 2024 when Chinese investors obtained a majority stake in the holding companies associated with the data center development.
Ownership complexities emerged, with Huang Wei’s name appearing in Finland’s ownership registry, while his ownership chain extended through companies in Spain and Singapore. The Pandora Papers leak revealed three companies registered under Huang Wei’s name in the British Virgin Islands, raising questions about their connection to the project.
Concerns over data security escalated following the European Union’s hefty fine imposed on TikTok for breaching data security regulations. TikTok’s ties to China raised fears of potential data access by Chinese authorities, especially given the differences in data protection laws between China and the EU.
The Finnish government faces legal challenges if it seeks to intervene in TikTok’s leasing of space at the Kouvola data center. Legal experts suggest that while national security is a compelling argument, concrete evidence of a security threat is necessary to justify any intervention.
EU implications further complicate the matter, as experts debate the potential consequences of restricting TikTok’s operations within the EU. The EU’s regulatory framework and the freedom to provide services and establish businesses within the bloc present additional hurdles to any attempts to block TikTok’s activities.
The controversy surrounding TikTok’s data center underscores broader concerns about data security, foreign investments, and the intersection of national security and business interests. As the digital landscape evolves, the delicate balance between economic development and safeguarding sensitive data remains a pressing issue for policymakers and industry stakeholders alike.