Plans for a data center in Oulu, Finland, have been scrapped amid alleged claims of Russian ties - which the company behind denies.

Oulu is situated on Finland's northwestern coast.

As reported by Kaleva, Green Grid Labs Finland Oy, a subsidiary of Swiss battery energy storage system company Riveon AG, applied for an investment permit for a 20kV underground cable laid between a substation operated by Finnish utility Oulun Energian and a plot of land owned by itself.

The City of Oulu rejected the application in February, citing the cable’s proximity to critical infrastructure and its inability to rule out risk.

There are few details about the planned facility.

Green Grid Labs denies having Russian links. According to Kaleva, the city did determine that connections existed, but the details were not shared. DCD was not able to independently verify the claims.

Finland has had a historically testy relationship with Russia, its eastern neighbor. Finland acceded to NATO and closed its Russian border following the Russian invasion of Ukraine, and the Finnish government has remained on high alert ever since.

Most of Finland’s data centers are located in the country’s capital, Helsinki. Established operators, including the likes of Verne, Equinix, and atNorth, have a presence in Finland, while new operators such as Polarnode, FCDC, Arcem, and Hyperco are planning multiple developments across the country.