Summary:
DataCrunch secures €55 million in funding to scale AI computing infrastructure, led by byFounders and other investors.
Founded in 2020, the company provides cheap and flexible compute for AI training, targeting startups and corporates like Sony.
Operates data centers in Finland and Iceland with sustainable practices, such as using waste heat for city warming.
Addresses the gap left by US hyperscalers, offering a sovereign European alternative for security-sensitive clients.
Plans to use funds for expanding infrastructure and deploying Nvidia's latest GPU systems to enhance capabilities.
Helsinki-based startup DataCrunch has secured €55 million in funding to scale up its AI computing infrastructure and capitalize on the growing demand for cheaper and more sovereign compute capacity.
This funding round, a mix of debt and equity, was led by Danish VC fund byFounders, with participation from Wise co-founder Taavet Hinrikus’ family office Skaala, pension fund provider Varma, and Finnish sovereign wealth fund Tesi. Debt financing was provided by Nordea, Armada Credit Partners, Danske Bank, Norion Bank, and Local Tapiola.
Coming less than a year after its €12 million seed round in October 2023, DataCrunch, founded in 2020, was initially bootstrapped. The company offers computing power specifically for AI training and inference, serving both startups and corporates, and operates four data centers in Finland and Iceland, with current clients including Sony and Freepik.
Cheap and Flexible Compute
The idea for DataCrunch emerged when founder Ruben Bryon identified a gap in the market: incumbent providers like Amazon Web Services and Google Cloud Platform did not offer affordable, flexible options for early-stage startups. Bryon shares, "For me, someone hacking away in the basement, I couldn't find a service that aligned with my goals; the pricing was completely out of whack."
Startups often face rigid quotas with hyperscalers, which DataCrunch helps overcome. Bryon explains, "If you're dealing with annoyances like quotas, we can ensure customers don't run out of compute, enabling faster scaling."
Sustainability and Sovereignty
DataCrunch's main data center in central Helsinki utilizes waste heat to warm the city, highlighting its commitment to sustainability. Additionally, as a European hyperscaler, it attracts security-sensitive customers who prefer alternatives to US providers. Bryon notes, "We have a growing number of clients that cannot work with US providers and are seeking European options."
The new funds will be used to expand infrastructure and deploy the latest Nvidia GPUs, specifically the B300 and GB300 systems, positioning DataCrunch as a key player in Europe's tech independence.
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