AI cloud provider DataCrunch has secured $64.6 million in a Series A funding round.

The Helsinki, Finland-based company has raised the funding in a round led by byFounders, Skaala, Varma pension fund, and Tesi, with additional participation from J12 Ventures and select angel investors.

Some of the funding is made up of debt financing, led by Nordea and Armada Credit Partners, with participation from Danske Bank, Norion Bank, and Local Tapiola.

The round builds on DataCrunch’s seed funding round, in October 2024, which saw the company raise $13m.

“European organisations are facing a critical choice: continue depending on foreign cloud providers or invest in local infrastructure that offers true data sovereignty,” said Ruben Bryon, CEO and co-founder of DataCrunch.

Bryon added: “This funding enables us to accelerate our vision of becoming Europe’s first AI cloud hyperscaler, providing enterprises with cutting-edge infrastructure that keeps their data secure, their operations compliant, and their environmental impact minimal. As regulatory, environmental, and technological forces converge, the company aims to become the default platform for enterprises seeking high-performance, compliant, and sustainable AI compute in Europe.”

The funding will be used to scale DataCrunch’s compute platform and help it become a European AI cloud hyperscaler.

The AI cloud has also submitted an expression of interest to the European Commission to develop an “AI gigafactory” in Latvia, which it says will house 100,000 GPUs.

According to DataCrunch, the Latvian facility will provide critical compute resources for startups, SMEs, and research institutions across the EU and will be powered by renewable energy.

Latvia is not particularly known for its data center market. According to DataCenterMap, the country has approximately 25 data centers, all of which are located in and around Riga.

Earlier this month, DataCrunch was reportedly looking to develop a data center in Akaa, Finland. The company proposed to purchase 10 hectares of land in the Akaa Point business district for around €600,000 ($698,200).

The company was founded by Bryon in 2020. According to DataCrunch’s website, it operates three data centers in Helsinki, Finland, and one in Reykjanesbær in Iceland. The facilities are powered by hydroelectric and wind power, and operate with a PUE of 1.2.