AI Data Centres are coming to Estonia

Estonia is becoming a major AI hub, with the Baltics’ largest AI factory near Tallinn, whose first phase will deliver 22 MW of capacity, and a planned €1.7 billion AI data centre in western Estonia.

Strengths

Strategic location for AI infrastructure

Estonia is positioning itself as a competitive Northern European location for data centres, AI infrastructure, and high-performance computing (HPC).

Renewable-powered and grid-ready

Estonia offers a modern, high-capacity power grid, strong European interconnections, rapidly expanding renewable energy production, and scalable sites for 100-400 MW data centre campuses.

Advanced digital and cybersecurity ecosystem

Estonia combines a worldleading digital society with deep expertise in cybersecurity, cloud technologies, AI and digital infrastructure, reinforced by the presence of the NATO CCDCOE.

Competitive operating environment

Estonia offers a highly competitive operating environment, with 0% tax on reinvested earnings, cost advantages over many Nordic markets, efficient cooling conditions and excellent connectivity to Northern Europe.

Major development projects underway

Major projects underway include the Sunly & Magnora Risti Data Centre Campus (scalable to ~400 MW), the Sopi-Tootsi Renewable Energy Area, and the Koljala Energy Hub integrating renewables, storage and industrial infrastructure.

Supportive investment framework

Estonia supports major investors through a €160 million incentive programme offering up to €20 million per project, a planned fast-track framework for strategic investments, and access to guarantees, R&D funding and EU digital infrastructure programmes.

Key investment segments

Estonia offers opportunities across the full data centre value chain from large-scale campus operators and infrastructure developers to equipment manufacturers, cooling technology suppliers, and service providers.

One of the strongest opportunities lies in AI-ready data centre campuses integrated with renewable energy production. Estonia’s growing renewable energy base, underutilised high-voltage grid, and available industrial land enable the development of campuses capable of supporting workloads above 100 MW, including AI inference and training infrastructure.

Support measures and financing

Estonia supports large-scale industrial and digital investments through a combination of national and EU-level instruments focused on innovation, export capability, and strategic infrastructure development.

The most significant direct support mechanism is the Large-Scale Investment Grant programme, under which Estonia will allocate €160 million between 2025 and 2028 for export-oriented projects exceeding €70 million in investment volume with priority sectors (including strategic digital technologies) receiving a lower eligibility threshold of €35 million. Projects may receive support of up to €20 million.

Additional support mechanisms include applied research funding, KredEx loan guarantees, EU innovation instruments, and potential participation in IPCEI-related programmes linked to AI and digital infrastructure development.

Estonia is also preparing a fast-track framework for strategic investments, expected to launch from 2027 onward. The initiative aims to accelerate permitting and improve coordination for nationally significant projects with planned investment volume above 0.1% of GDP
at the time of submission, including digital infrastructure investments.

Data Center

How can we help?

Enterprise Estonia offers dedicated support for investors throughout
the investment process.

We can assist with:

  • Tailored visits and site identification
  • Introductions to project developers, energy companies, and
    infrastructure partners
  • Navigation of permitting, grid connection, and planning processes
  • Identification of applicable support instruments and grant applications
    Coordination with relevant ministries
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