EcoDataCenter, a Swedish sustainable data center developer, has signed an agreement with Smedjebacken Municipality to purchase land to build a data center campus in the Dalarna region, capping a deal seven years in the making.
The purchase covers roughly 52 hectares (128 acres) on which EcoDataCenter will build a 150 MW data center with the company noting that there is a “credible opportunity to expand further.” According to a press release, construction is anticipated to begin in 2027 but environmental and building permits must first be finalized.
“We have our roots in the region, and being able to continue to grow here is very important to us. We’ve had many productive discussions with Smedjebacken since 2019, and we are now taking the next step in this establishment,” said Peter Michelson, EcoDataCenter Chief Executive Officer.
The new facility will be EcoDataCenter’s third data center campus. The company’s other facilities are located in Falun and Borlänge. The Borlänge data center is under construction and, together with Falun, will offer over 500 MW of total available power once complete in 2027. Earlier this year w.media reported that Mistral AI announced a partnership worth US$ 1.4 billion with EcoDataCenter that will see it build an AI data center at the Borlänge site.
The new campus in Smedjebacken Municipality is just south of Borlänge, expanding EcoDataCenter’s footprint and improving its ability to serve large-scale operations.
“Our priority is ensuring we can deliver scale for our clients, and we do that in close collaboration with the municipalities we operate in. Smedjebacken has been a strong partner throughout this process, and that partnership is what allows us to grow responsibly and reliably,” said Michelson.
“This is a major step toward breaking ground. An establishment of this scale means a great deal for the local labor market. EcoDataCenter’s high ambitions on sustainability were a decisive factor in the municipality’s decision,” said Fredrik Rönning, Chair of the Smedjebacken Municipal Executive Board.
Sweden’s data center market had an installed base of 500 MW as of January 2026 and is forecast to reach 710 MW by 2031, with more capacity in the pipeline according to Mordor Intelligence. The country’s generous electricity-tax rebate, a renewable-heavy energy mix, and 15 year power purchase agreement that allow hyperscalers to lock in energy costs have made Sweden particularly attractive for data center developers and operators.