UPM Explores Data Centre Development at Former Paper Mill in Finland
Finnish forest industry company UPM is exploring the redevelopment of the former paper machine hall at its closed Kaukas paper mill in Lappeenranta into a data centre, as part of efforts to repurpose the vacant industrial site. The company is currently in discussions with several international data centre operators regarding a potential investment.
The initiative follows UPM’s decision to cease paper production at the Kaukas mill last year, leaving the large production facility available for redevelopment. According to UPM’s Head of Real Estate, Hannu Havanka, discussions with multiple data centre operators are ongoing, although the company has not disclosed the identities of the potential partners.
A major advantage of the site is its location within an already designated industrial zone, which is expected to streamline regulatory approvals and accelerate project implementation. Converting the existing paper machine hall into a data centre will require a building permit, and the City of Lappeenranta has confirmed that preliminary planning discussions have already taken place.
UPM has not announced a timeline for finalising an agreement with a data centre operator but stated that details will be made public once a deal is concluded.
The project builds on UPM’s previous experience in repurposing former paper mill sites for digital infrastructure. At its former Myllykoski mill in Kouvola, Icelandic data centre developer atNorth is planning several large-scale facilities, reflecting the increasing appeal of former industrial properties for data centre investments.
The proposed redevelopment also aligns with a broader global trend of transforming disused industrial sites into digital infrastructure hubs. Nordic countries, including Finland, continue to attract data centre investments due to their abundant fossil-free electricity, reliable power networks, and naturally cool climate, which helps reduce energy requirements for cooling.
