Latvian telco Tet has broken ground on its third data center.

The groundbreaking ceremony, which took place on May 29, was attended by Prime Minister of Latvia Evika Silina, who said that the project would enable the country to become a ‘digital and cybersecurity powerhouse both regionally and globally’.

First announced in August 2024, DC7 will be located in Salaspils, a town southeast of the nation’s capital, Riga. The project’s website states that 112 racks will be built by 2026, and the remaining 112 racks by the end of 2028.

Waste heat from the facility will be transferred to Salaspils Siltums, a local utility company, which will supply it to residents in the area.

Citrus Solutions, a subsidiary of Tet specialising in the construction of digital infrastructure, was tapped for the project.

Tet CEO Uldis Tatarcuks told LETA, Latvia’s main news agency, that DC7 will start operating in September 2026. He also said that €30m ($34m) would be invested into the project.

Tet currently operates six data centers, all of which are located in the vicinity of Riga. At full buildout, DC7 will be the largest facility by amount of racks provided.

The Latvian state has a majority stake (51 percent) in Tet, with the remaining 49 percent belonging to Telia, a Swedish telco. Tet previously acquired Telia’s Latvian business in January 2022.

Latvia’s data centers are clustered around Riga. The capital is home to competitors including Delska, SigmaNet, and Standart AG.