The Chinese-owned social media giant said the data centre in Finland was a "significant step" in its commitment to data security in Europe.

The European Union last week hit TikTok with a 530-million-euro ($600 million) fine, accusing it of sending Europeans' personal data to China and failing to guarantee it was shielded from access by Chinese authorities.

TikTok has been in the crosshairs of Western governments for years over fears personal data could be used by China for espionage or propaganda purposes.

The company said it planned to appeal the fine from Brussels, the second-largest ever imposed by the EU.

TikTok said the data centre, to be built in Kouvola in southeastern Finland, was part of Project Clover, its 12-billion-euro initiative to protect "the data of our 175 million-strong European community".

"Once live, it will support the default storage of European user data within our secure European Enclave, expanding our capacity to manage data locally while meeting the highest standards of security and oversight," it said.

"A strong digital infrastructure, clean energy mix, robust data governance and skilled tech talent" made Finland "an ideal location" for the centre, it said.