Google to pump €13 billion into Finnish data centers amid environmental concerns

Google has announced plans to invest €13 billion in Finland over the next two years, marking its largest investment in Europe. The tech giant will focus on constructing data centers in the northern municipalities of Kajaani, Muhos, and Vaala, with additional expansion in Hamina, where it already operates a facility. In Muhos, a town of around 8,800 people, Google has already acquired land near major power lines and begun preparatory work after clearing forest from the site.

The investment is expected to bring significant changes to the region. Muhos Mayor Kimmo Hinno anticipates that thousands of workers from diverse nationalities will be needed during construction, which will require housing and services. Local farmer Joni Pitkänen welcomes the economic boost but expresses concerns about the area’s readiness to handle the increased electricity demand. Other residents hope the project will encourage young people to stay in the area for employment opportunities.

However, the investment has sparked controversy. Finland’s supervisory agency LVV is investigating whether Tuike Finland, representing Google, cleared over 300 hectares of forest in Muhos without the required environmental impact assessment. The Finnish Association for Nature Conservation has called for a suspension of work until the legality of the project is resolved, citing satellite imagery that suggests natural areas were cleared improperly. Google maintains that the clearing complied with the Forest Act and expects further clarification from LVV.

Finland’s cool climate and stable, inexpensive electricity, much of it generated without fossil fuels, have made it an attractive location for data center investors. However, the rapid development of these facilities has intensified debates over electricity prices, grid capacity, and environmental impact. A recent public initiative advocating for stricter regulation of data centers’ energy consumption gathered over 50,000 signatures in just three days, prompting further scrutiny.