Association founded by SMEs to sharpen Finnish data centres’ competitive edge
Finnish Data Center Association (FDCA) is a great example of how SMEs and micro companies can actively participate in standardization. Among others, the association has influenced standards on general energy efficiency and the recovery and reuse of waste heat generated by data centres.
When FDCA was first founded in 2014, it had a clear objective: there was a need for an association that would enable data centre companies to participate in standardization.
Over 99 percent of all Finnish companies are SMEs. Many SMEs feel that they don’t have sufficient resources to participate in standardization activities. The same applies to the data centre industry. However, companies in the field saw the importance of standardization, and therefore the decision to collaborate and join forces was a real game-changer. In this way, companies could influence work on the standards important to them without it placing an unreasonable strain on individual companies.
“FDCA’s standardization work has yielded excellent results! Our key achievement is active participation in work on the Energy Reuse Factor (ERF) standard for measuring the recovery and reuse of waste heat,” Mikko Aho enthuses. Aho is Vice-Chairman of the FDCA Board and chairman of the Finnish standardization group SFS/SR 311 on resource efficient data centres.
FDCA was closely involved in drafting the ERF standard. Finns were also the first to deploy the new set of indicators.
“This achievement is our crown jewel, as the ERF standard is referred to in the EU Energy Efficiency Directive,” Aho says.
FDCA’s standardization work has yielded excellent results!
Finnish engineering know-how and experience were major assets
FDCA has proved itself in contributing to many key standards in the field. Among others, the association has participated in work on the Power Usage Effectiveness and Water Usage Effectiveness standards.
However, one of the greatest achievements has been the ERF standard on measuring waste heat recovery and reuse. Finns played a key role both in terms of drafting the standard and deploying the new set of indicators.
“In the data centre field, we saw that this was a great opportunity for improving eco-friendliness, sustainable development and energy efficiency. I don’t know of any other industry utilising waste heat at this scale,” Aho says.
Finland became somewhat of a trailblazer in drafting the ERF standard. This was thanks to Finnish engineering know-how and experience.
“Finnish engineering is a real point of pride. Here in Finland, we already had data centres that were proficient at waste heat recovery and reuse. The need for standardization was clear to us.”
FDCA invited the international standardization work group to visit Finland and presented the implementation of their idea in practice. The guests were impressed by the Finns’ idea and work on the new standard commenced.
“I am proud to say that the ERF standard was very much brought about thanks to Finnish efforts.”
The whole data centre industry stands to benefit from standardization
The operation of all data centres is governed by the EU Energy Efficiency Directive. The directive drives data centres to improve their energy efficiency. Standards on the other hand influence the directive and, through it, legislation.
FDCA has promoted sustainable development by participating in standardization. Standards promoting resource efficient data centres have been included in the EU Energy Efficiency Directive.
“Our standardization efforts have helped improve the profitability of the Finnish data centre industry and draw in billions in investments. We have the potential to become one of the leading nations in the data centre business,” Aho says.
The buzz around Finland was evident at the Datacloud Global Congress, an international data centre event held in France in June 2025.
“Finland’s booth was definitely the busiest! We were surprised to beat Sweden, and even Norway.”
Boosting Finland’s competitive advantage through standardization
In the end, participation in standardization work is a strategic choice. Finnish companies have a good chance of succeeding in the industries where Finnish participation in standardization is strong.
Mikko Aho emphasises the importance of strategic choices when it comes to deciding which activities to participate in. It makes sense to prioritise work on standards with significant business benefits.
“For example, improved energy efficiency is a key objective for the data centre industry and standardization is the best means for achieving it.”
Standardization helps Finland as a nation to gain a competitive advantage.
“We have top expertise and the ability to work in compliance with standards. Our technical implementation is world-class, and we are great at finding new ways to improve efficiency.”
The association model could serve other industries too
Standardization takes time and effort. Work on one standard from an initial idea to completion can take several years. Although participation can place an unreasonable strain on individual companies, the task is more manageable for an association.
“An association can more easily find experts to participate in standardization activities. Participation is easy, and everybody is free to contribute as little or as much time and effort as they can.”
Although standardization work is at the heart of FDCA, the association, soon 11 years in operation, also offers guidance, advisory services and lobbying.
Aho recommends the association model to other quickly evolving industries with strong international standardization activities.
“For us, the association has been a source of many benefits and has evolved into a multifaceted operator. The association has enriched the whole industry and all the companies involved. Our next objective is to recruit a Managing Director.