EcoDataCenter Secures $478 Million for Green Data Center Expansion

EcoDataCenter, a Swedish company known for its eco-friendly colocation data centers, has secured $478 million (€450 million) in equity funding from institutional investors. This funding aims to expand its green data center technology and infrastructure, announced on their website. The company has now raised a total of €910 million ($966 million) in equity.

The funding comes as demand for AI compute power grows, with EcoDataCenter serving major clients like CoreWeave, DeepL, and other hyperscalers. Notably, EcoDataCenter is a key partner in building Europe's first Blackwell cluster in Falun, Sweden, in collaboration with CoreWeave and Nvidia.

EcoDataCenter is recognized for its sustainability efforts, utilizing renewable energy and pioneering the use of cross-laminated timber construction, a method now adopted by Microsoft. This approach is part of a broader trend in the data center industry to reduce environmental impact, as data centers account for about 1% of global electricity consumption.

The investment highlights the increasing value of data centers amid the AI boom, paralleling global initiatives like the U.S.'s $500 billion Stargate project to build mega AI data centers.