French AI firm Mistral AI is to lease capacity from Swedish colocation provider EcoDataCenter.

The companies this week announced a strategic long-term investment of €1.2 billion ($1.42bn) to build an AI-focused data center at EcoDataCenter’s Borlänge site.

Under the partnership, Mistral AI will deploy AI compute at EcoDataCenter’s facilities in Sweden. Full details haven’t been shared, but the first facilities are scheduled to open in 2027.

Mistral’s first infrastructure investment outside France will host Nvidia’s latest-generation Vera Rubin GPUs.

“This investment is a concrete step toward building independent capabilities in Europe, dedicated to AI,” said Arthur Mensch, CEO and co-founder of Mistral AI. “By delivering a fully vertical offer with locally processed and stored data, we are reinforcing Europe’s strategic autonomy and competitiveness. This lays the foundation for a European AI cloud that can serve industries, public institutions, and researchers at scale.”

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 broke ground on its Borlänge campus in September. Formerly occupied by a paper mill, the 20-hectare site will offer 250MW in its first phase, potentially scaling to 600MW.

“AI is critical infrastructure for Europe’s competitiveness, security, and economic growth,” added Peter Michelson, CEO of EcoDataCenter. “Together with Mistral AI, we are building high-performance AI infrastructure on Swedish soil – with sustainability, resilience, and European strategic autonomy at its core. This investment strengthens Sweden’s position as a leading hub for advanced AI and digital infrastructure in Europe.”

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

Founded in 2023, Mistral AI is a French AI firm. The company has raised billions of dollars in investment and is valued at more than €11.7 billion ($13.67bn). Investors include ASML, DST Global, Andreessen Horowitz, Bpifrance, General Catalyst, Index Ventures, Lightspeed, and Nvidia.

The company has previously used Microsoft Azure and Google Cloud, and is a known CoreWeave and Scaleway customer. Mistral also runs its own AI cloud, Mistral Compute, which offers access to the company’s products and the ability to rent GPUs for powering other AI systems.

The company is developing a 40MW cluster in France in partnership with Iliad’s Scaleway, and is developing a 1.4GW cluster around Paris in a venture backed by investment bank Bpifrance, UAE investment fund MGX, and Nvidia. It is also working with Eclairion and AI cloud firm Fluidstack.

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.

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.

EcoDataCenter has previously secured language AI company DeepL and AI cloud firm CoreWeave as customers.