EcoDataCenter has broken ground on a new data center in Borlänge, Sweden.

Today’s announcement marks the beginning of construction on 20 hectares of land formerly occupied by a paper mill.

ByggPartner is listed as the company’s construction partner.

At completion, the first phase of the facility will have access to 250MW of energy, with the company’s LinkedIn post stating that the site could be scaled up to 600MW.

Previous announcements made by Swedish utility Borlänge Energi had stated that the site could total up to 360MW.

The company acquired the land for the facility in September 2024 for SEK 400 million ($39m) and previously said that they would aim to have the first data centers ready by 2027.

The parcel occupied by EcoDataCenter constitutes a third of the total 60 hectares formerly occupied by the papermill plant. NorthVolt, the now-bankrupt green battery firm, had acquired all 60 hectares in 2022 before deciding to sell it to the municipality of Borlänge in 2024, which in turn sold 20 hectares to EcoDataCenter.

“The site 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,” said CEO Peter Michelson.

Borlänge is a locality in central Sweden located northwest of Stockholm. It is around 20km away from the city of Falun, where EcoDataCenter also operates a data center.

EcoDataCenter was formed in 2015 as a joint venture between local energy company Falu Energi & Vatten and data center operator EcoDC AB. Nordic real estate developer Areim took a majority stake in the firm via the Areim Fund III for around SEK 200 million ($22m) in 2018 and merged it with Swedish operator Fortlax in 2019.

Earlier this month, the company recently raised 600 million ($703m) in debt financing from Deutsche Bank Private Credit and Infrastructure for the development of AI data centers in Sweden.

In April 2025, EcoDataCenter sold three facilities in Sweden to CapMan Infra as part of a hyperscale pivot. Two of the data centers are located in Stockholm and one in Piteå.