Reimagining Infrastructure: Sweden’s 600 MW Borlänge Data Center Campus

EcoDataCenter has begun construction on a massive new data center campus in Borlänge, Sweden. The project repurposes a former paper mill into one of Europe’s largest AI and data infrastructure hubs. The site will ultimately deliver 600 MW of power capacity, putting it on par with the continent’s biggest hyperscale data facilities. This development underscores Sweden’s role as the Nordic leader in digital infrastructure and comes amid a broader push to invest in cutting-edge technology and construction projects.

Project Scope and Vision

The project transforms the Kvarnsveden site in central Sweden. The first phase of the campus will provide 250 MW of power and is scheduled for completion in early 2027. Further phases will scale capacity up to 600 MW to meet enormous computing demands for AI and digital services. “This is a historic day for EcoDataCenter, for Borlänge, and for Sweden,” said Peter Michelson, CEO of EcoDataCenter. He said the Kvarnsveden project “will play a key role in supporting digitalisation.” He added that the resulting facility “will become one of the largest projects of its kind in Europe.”

Reimagining an Industrial Site

Unlike a typical greenfield build, this campus reuses an existing industrial property. A former paper mill will be repurposed into a high-tech computing campus. “The facility once produced paper – the raw material of the newspaper information age. Now, Borlänge will produce the raw material for AI and the next information age,” Michelson said. The reuse of the mill structure helps advance sustainability by leveraging existing infrastructure and local energy resources. At 600 MW, the Borlänge site is on par with Europe’s largest data campuses, although its reuse of an existing facility makes the project unique.

Industry and Local Support

Local officials have strongly backed the project as a boon to the region. Borlänge’s Municipal Board Chairman Erik Nises praised the development for revitalizing an important industrial site. “We value what EcoDataCenter brings to our municipality and are pleased that construction can begin so soon after the site acquisition,” Nises said. “We look forward to seeing the Kvarnsveden paper mill brought to life in a new form.” Mats-Erik Olofsson, CEO of local utility Borlänge Energi, said the project will “contribute to strengthening Borlänge’s position and support the local business community to continue developing.”

Final Thoughts

The Borlänge data center is part of a wave of major Northern European projects. In Norway, engineers are constructing the Rogaland Fixed Link (Rogfast), a 26.7 km undersea highway tunnel set to open in 2033. In Sweden, the government has earmarked roughly SEK 1,171 billion (about €102 billion) for roads and rail from 2026–2037. These projects – from AI data campuses to tunnels and highways – reflect a regional focus on modernizing critical infrastructure and supporting economic growth. The trend aligns with Sweden’s overall strength as a digital infrastructure hub. Sweden today hosts over 1 gigawatt of data center IT capacity – more than any other Nordic country – and major cloud operators like AWS, Google and Microsoft have built or are building large facilities there. Sweden’s abundance of renewable power, cool climate and reliable grid make it an ideal location for energy-intensive digital infrastructure. Industry analysts say demand for projects like Borlänge’s campus will only grow as AI and digital services expand across Northern Europe.