Stories of new data centre companies being formed are becoming more common and this time the news come from Finland.

Backed by Danish real estate investment company NREP and pension fund Varma, Hyperco is the newest entrant to the region’s rapidly expanding data centre economy.

Founded by former NREP shareholders Ville Vartiainen, Aleksi Taipale and Timo Pohjanpalo, who has been named CEO, the company plans to invest €200 million (US$243.5 million) in both new and existing data centres initially in Finland and later in the wider Nordics region.

However, the business’ long term plans aim to build a portfolio in the next five years to more than €1 billion, or $1.22 billion.

Taipale, co-founder and partner at Hyperco, said: “Hyperco is a new Nordic data centre focused real estate developer founded together with Ville Vartiainen and Timo Pohjanpalo.

“We are also happy to announce our equity financing with NREP and Varma, which gives us an initial investment capacity of approximately €200 million to be invested into sustainable data centre real estate first in Finland and soon in the Nordics.

“The region’s cool climate combined with a reliable electricity grid and the availability of renewable energy provides the best foundation to develop sustainable data centres and our digital society. “Modern data centres, which consume huge amounts of electricity, should run on renewable energy and the waste heat generated in data centres should be recovered.”