EcoDataCenter, a Swedish digital infrastructure provider, has raised 600 million euros (703.5 million dollars) in debt financing from Deutsche Bank to expand its AI data centres. The company announced the development on Tuesday, highlighting the growing demand for high-performance computing driven by the global AI boom.
The financing, provided by Deutsche Bank through its Private Credit and Infrastructure unit, will speed up the construction of large-scale data centres in Falun and Borlange, located north of Stockholm. These facilities are designed to handle AI workloads and other applications that require advanced computing power.
Peter Michelson, CEO of EcoDataCenter and a former executive at Ericsson, explained that the financing gives the company a two-year runway under its current plans. However, he added that the rising demand could push the company to expand further.
“If we were to stop building tomorrow, we would be a highly profitable company… but we obviously have ambitions for much more than that,” Michelson said. “Given where the market is heading, I wouldn’t be surprised to see that there will be a further acceleration of that, which also would mean more capital (is) needed.”
The construction of data centres has surged in recent years as technology companies work to support increasingly advanced AI models. These models require large amounts of power and next-generation infrastructure to operate effectively.
This latest funding follows a few months after EcoDataCenter’s owner, Swedish fund manager Areim, secured 450 million euros for the company. Since 2023, EcoDataCenter and Areim together have raised a total of 1.8 billion euros in financing.
Sweden has become a key location for global data centre investments. Companies such as Microsoft, Meta and Alphabet have expanded in the country, attracted by its strong power grid and reliable connectivity.
EcoDataCenter opened its first facility in 2019 and has since built a client base that includes German translation start-up DeepL and carmaker BMW. In 2023, the company joined forces with specialised cloud provider CoreWeave to develop one of Europe’s largest training clusters. It is also hosting a Nvidia Blackwell SuperPod for DeepL, with highly sought-after chips that enterprises rely on to train and run large AI models.
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