Norwegian Firm Challenges Google’s Swedish AI Datacenter Deal
A Norwegian company, Fossefall, has launched legal action to block Google from constructing one of the world’s largest AI datacenters in Sweden. The firm argues that Timrå Municipality, where the project is planned, acted unlawfully by granting Google preferential terms that disadvantaged 30 rival bids, including its own. Fossefall filed an appeal for a judicial review through a proxy at the Administrative Court of Härnösand on September 10, 2026, claiming that the municipality stopped elected councillors from having a final say over the deal.
The industrial site in question, Torsboda Industrial Park, was developed to attract major industries, create jobs, and boost the local economy. Google’s proposal involves a Skr2.1bn (€186m) deal to buy the entire park, pay off public debt, and build essential infrastructure. The site offers a potential electrical grid capacity of 1 GW, enough to power a large datacenter campus. Google has also promised to create 500 jobs, use waste heat for district heating, and invest in local training and community projects.
Fossefall’s CEO, Øyvind Vesterdal, argued that Nordic countries should prioritize native AI firms over foreign investors to retain economic value locally. He compared the situation to Norway’s oil and gas strategy in the 1970s, which ensured wealth stayed within the country. Fossefall claims that its Nordic ownership would mean more local economic benefits compared to a foreign firm like Google, which might not pay taxes in Sweden. The company’s ownership is primarily Norwegian, with some Swedish and US investors.
Fossefall’s legal challenge alleges that the municipalities sold the industrial park to Google at below-market rates, violating state-aid laws that prohibit such favoritism. The appeal also argues that the elected council should have decided on substantial financial clauses rather than delegating them to the executive municipal board. Despite these claims, Torsboda CEO Christian Söderberg defended the Google deal, stating it was the best option for the region and would attract high-tech businesses and skilled migrants.