Estonian power-distribution manufacturer Harju Elekter has opened a new 4,000-square-metre production unit at its Keila plant, built to make electrical systems for data centres.

The unit was opened on Thursday with a ceremony at which an electrical cable was symbolically cut, writes Tööstusuudised. Alvar Sass, CEO of the company’s Estonian unit, told the publication that “the industry has got busy” and that the new factory could have been built even larger.

Harju Elekter invests €4M to meet data-centre demand

Harju Elekter announced the expansion in October 2025, putting the investment in the building and its equipment at more than €4M. The extension raises the Keila site’s production area to 28,000 square metres. The additional space focuses on power-distribution equipment for data centres, which is exported to customers in Europe and beyond.

“There is clear growth in global demand for complex factory-built and technological buildings. Our customers are developing complex data centres and also helping to increase the capacity of smart electricity grids. We already make similar products today, but to serve the growing demand, we need both additional square metres and upgraded technical infrastructure,” Sass said when the expansion was announced.

The expansion is expected to add around 30 jobs to a Keila workforce of 361 people. Estonian contractor NOBE built the factory after winning the group’s tender, and the cornerstone was laid in January.

E-houses take a larger share of the order book

The new space will support the growth of the group’s substation and E-house business lines, Harju Elekter Group said in its first-half 2026 report. E-houses are prefabricated modular buildings that arrive at a site with the switchgear and control systems already installed. They now make up a larger share of the Estonian unit’s revenue, and the order books of its Estonian and Swedish operations have grown since the start of the year.

Data-centre work is already flowing through the plant. In July, Harju Elekter signed a €15.5M contract with Siemens to supply E-House systems for a data centre under construction in Finland.

Export markets drive the expansion

The group’s Keila production is increasingly allocated to export contracts, particularly in Scandinavia. Finland remains its largest market, with revenue of €31.0M in the first half of 2026, while sales in Sweden rose to €14.1M. Group revenue for the period was €77.2M.

When it decided to build, the group tied the investment’s return to rising electricity consumption, driven mainly by the boom in network and data-centre construction. Harju Elekter Group, listed on Nasdaq Tallinn, also runs factories in Finland, Sweden and Lithuania.

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