London-based algorithmic trading firm XTX Markets has started building a new data center in Finland, with plans to seek planning permission for four more in the coming years. The company is pouring $1 billion into the project, which will eventually handle upwards of $250 billion worth of daily trades to deliver liquidity to fixed income, commodity, equity, and foreign exchange markets.
Finland offers a strategic advantage
XTX Markets has selected Finland for its various strategic advantages. Located in a country known for its quality technology infrastructure, the new data centers will support low latency trading, a critical factor in the delivery of modern digital trading and banking services. Moreover, being located in the EU also mandates compliance with the bloc’s stringent data sovereignty regulations, thus granting XTX Markets access to one of the world’s largest markets.
The new site, spanning 478 acres, will provide a total IT capacity of 22.5 megawatts across three data halls. Completion is planned for 2026, with the facility joining a global portfolio of over 50 data centers. Kajaani, the town where the first data center is being built, was also chosen for its access to renewable energy. Being located in the middle of Finland in a colder climate and away from any built-up areas, means that the region’s natural climate will greatly reduce cooling requirements, and the excess heat generated from the data center will be freely provided to the local community.
Raising the bar for fintech innovation
Although XTX Markets’ new data center primarily focuses on high-frequency trading, its relevance to digital banking and fintech innovation shouldn’t be underestimated. Digital banking is also dependent on low latency data-processing to offer key services such as instant payments, account updates, and real-time fraud prevention.
This latest development highlights a growing preference for shared infrastructure in financial services, and also introduces new opportunities for co-location services. After all, XTX Markets’ clients include regional banks and institutional investors, who depend on their technology services to deliver quality experiences to their own clients.
As far as fintechs are concerned, the new data center exemplifies rapid innovation across the sector, raising the bar for key functions and operations, including data analytics, artificial intelligence, cross-border transactions, and the sustainability of financial services. It also demonstrates the importance of regulatory alignment, especially for fintechs operating – or planning to expand into – the European market, which is well-known for its stringent, albeit relatively uniform compared to the US, regulatory landscape.