Native across cool temperate parts of Europe, Asia, and North America, Sphagnum squarrosum grows in bogs, fens, wet woodland, and seepy ground. Those habitats stay consistently wet, low in nutrients, and strongly acidic, which explains the best soil for sphagnum.
Rather than relying on deep roots, this moss absorbs moisture across its tissues and forms dense, moisture-holding mats. It prefers peaty, organic-rich, slightly silty substrate that stays saturated yet still has some air spaces. That balance supports constant moisture without turning the substrate into dense, stagnant mud.