Google has revealed plans to invest €13 billion in Finland, marking its largest single investment in Europe. The funding will support the construction of three new data centers, the expansion of an existing facility, and energy projects to meet the increasing demand for artificial intelligence services. As part of the initiative, Google signed a 22-year contract with Finnish utility Fortum to purchase up to 50% of the electricity generated by the Loviisa nuclear power plant. This partnership ensures a reliable and low-carbon power supply for Google's growing infrastructure.
The new data centers will be located in Kajaani, Muhos, and Vaala, with an expansion of the current site in Hamina, which Google has operated since 2009. These facilities will support AI products such as Google's Gemini chatbot, as well as services like Search, Maps, and YouTube. The investment is expected to create over 37,000 jobs during the construction phase in 2027 and 2028, and contribute approximately €3.6 billion annually to Finland's GDP.
Finland's cool climate, abundant low-carbon electricity, and less congested power grid make it an attractive location for data centers. The cooler temperatures help reduce the energy required for server cooling, aligning with Google's commitment to sustainability. The company also plans to invest in clean energy projects and community initiatives focused on biodiversity, education, and workforce development.
Finnish Prime Minister Petteri Orpo highlighted the significance of the investment, emphasizing Finland's strengths in digital infrastructure and responsible AI development. The deal with Fortum will support efforts to extend the operational life and capacity of the Loviisa nuclear plant, which currently supplies about 10% of Finland's electricity.
This move aligns with Alphabet's broader strategy to expand computing capacity for AI, following an increase in its global spending plans to $205 billion earlier this year. Google's investment in Finland underscores the growing importance of securing sustainable energy sources to power the expanding AI ecosystem.