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Google’s Big Finland AI Bet Hits A Green Hurdle; Two Data Centres Put On Hold

Finland is emerging as an increasingly attractive destination for data centre investments, thanks in part to its cool climate and access to low-carbon electricity.

Google’s Big Finland AI Bet Hits A Green Hurdle; Two Data Centres Put On Hold
Image: Unsplash
  • Finnish authorities ordered Google to stop work at two AI data centre sites over environmental concerns
  • Google cleared over 300 hectares of forest before completing required environmental impact assessments
  • Work included tree clearing, road building, and drainage modification at Muhos and Kajaani sites

Finnish authorities have ordered Google to halt preparatory work at two planned AI data centre sites in Muhos and Kajaani, citing concerns that the company cleared more than 300 hectares of forest before completing the required environmental impact assessments.

The sites are part of Google's €13bn (£11bn; $15bn) investment in Finland, unveiled less than a month ago and billed by the company as its biggest-ever single investment in Europe, according to a report by the BBC.

Finland's Supervisory Agency (LVV) said work at one site had proceeded without the required environmental impact assessment and ordered a halt to measures that could significantly alter the environment by 23 October, the report stated.

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Google acknowledged that it had failed to meet its own high standards in this case and said it would comply with the agency's guidance. The orders cover preparatory work undertaken at the planned data centre sites in Muhos and Kajaani.

According to LVV's head of environment, Tommi Muilu, the work at the sites involved clearing trees and topsoil, building access roads and storage areas, and modifying drainage ditches.

Tuike Finland, the company involved in Google's data centre projects, has been given until 14 October to explain the situation and outline its plans going forward. The agency warned that failure to comply could lead to the start of “enforcement proceedings.”

Hanna Halmeenpaa, chair of the Finnish Association for Nature Conservation, had earlier told AFP that areas of natural importance that should have been protected had been cleared. The conservation organisation had also previously urged that the work be suspended until the environmental requirements could be properly assessed.

Google said last month that it plans to invest at least €13bn (£11bn; $15bn) in Finland during 2027 and 2028. The investment will include new data centres in Kajaani, Muhos and Vaala, as well as further expansion of its existing facility in Hamina.

The company said the infrastructure would enable it to keep pace with rising demand for services such as Search, Maps and its AI assistant, Gemini.

Google said the construction phase, spanning 2027 and 2028, is expected to create more than 37,000 jobs and add an average of €3.6 billion annually to Finland's economy.

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As part of its expansion plans, Google has signed a 22-year power purchase agreement with Finnish energy company Fortum, securing up to half of the capacity of the Loviisa nuclear power plant. Fortum said the deal would support the plant's continued operations through 2050.

Finland is emerging as an increasingly attractive destination for data centre investments, thanks in part to its cool climate and access to low-carbon electricity. The colder temperatures also help cut the amount of energy needed to cool server-filled facilities, improving operational efficiency.

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