Google picks Finland for its largest single investment in Europe
The US tech giant says the €13bn data centre project will create tens of thousands of jobs.
Google has chosen Finland for its biggest single investment in Europe.
As part of a record €13bn (£11bn; $15bn) commitment to the country’s AI infrastructure, Google said it will purchase up to half the electricity generated by one of Finland’s nuclear power plants. The company said the package will finance three new data centres, enlarge an existing site and back energy projects to meet rising demand for AI services.
“This is Google’s largest single investment in Europe and a testament to Finland’s leadership in responsibly building AI infrastructure,” the company said on Wednesday.
“Google’s decision is a clear testament to our strengths,” Finland’s Prime Minister Petteri Orpo said in a statement.
Under the agreement, Google has signed a 22-year deal with Finnish utility Fortum to buy up to 50% of the output from the Loviisa nuclear power plant.
Earlier this week, TikTok announced a $1bn investment in Finland to build a new data centre in Kouvola, citing the country’s “strong digital infrastructure, clean energy mix, robust data governance and skilled tech talent”.
Finland has become an appealing destination for data centres because of its cool climate, abundant low-carbon electricity and relatively uncongested power grid. Lower temperatures can cut the energy required to cool facilities filled with computer servers.
Technology firms are competing to secure power supplies as the AI boom increases demand for huge networks of data centres.
According to Google, the investment is expected to support more than 37,000 jobs during construction and add €3.6bn a year to Finland’s GDP. Construction is scheduled for 2027 and 2028.
“The value of the data economy extends far beyond direct investment into spurring innovation, research and development,” Orpo added.
“Deepening our collaboration with Google will deliver lasting benefits for both parties.”
Google will develop new data centres in Kajaani, Muhos and Vaala, and expand its existing facility in Hamina, which it opened after converting a former paper mill in 2009.
The infrastructure will support products such as its AI chatbot Gemini, as well as services including Search, Maps and YouTube.
Google said the investment also includes “clean energy projects, and dedicated nature and community funds to support local biodiversity, education, research, and workforce development”.
“Google is proud to deepen our roots in Finland,” said Ruth Porat, president and chief investment officer of Alphabet and Google.
“This investment underscores Google’s commitment to grow our presence responsibly, pairing the expansion of our technical infrastructure with new energy capacity, grid enhancements, and energy affordability initiatives,” she added.
Earlier this year, Alphabet, Google’s parent company, increased its global spending plans to as much as $205bn as it looked to expand computing capacity for AI services.
The deal with Fortum gives long-term financial certainty for the Loviisa plant, which currently produces about 10% of Finland’s electricity.
Fortum said Google’s commitment would help support an investment programme designed to extend the life of the nuclear station and raise its generating capacity.