Google has revealed plans for its largest single investment in Europe, committing €13 billion to develop AI infrastructure in Finland. The investment will fund the construction of three new data centers in Kajaani, Muhos, and Vaala, as well as the expansion of an existing facility in Hamina. These centers will support Google's AI services, including its Gemini chatbot, Search, Maps, and YouTube.
A key component of the initiative is a 22-year contract with Finnish utility Fortum to purchase up to 50% of the electricity generated by the Loviisa nuclear power plant. This agreement ensures a stable, low-carbon power supply to meet the growing energy demands of AI data centers. The Loviisa plant currently provides about 10% of Finland's electricity, and Google's commitment will help fund upgrades to extend the plant's operational life and increase capacity.
Finland's cool climate, abundant clean energy, and robust digital infrastructure make it an attractive location for data center investments. The cooler temperatures reduce the energy required for server cooling, while the country's relatively uncongested power grid supports large-scale operations.
Google's 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. The company also plans to support local biodiversity, education, research, and workforce development through dedicated funds.
Finnish Prime Minister Petteri Orpo welcomed the investment, emphasizing its significance for innovation and economic growth. This move follows other major tech investments in Finland, such as TikTok's $1 billion data center project, underscoring the country's growing role in the digital economy.
Alphabet, Google's parent company, has increased its global spending to expand AI computing capacity, with this Finnish project representing a major part of that strategy. The collaboration with Fortum provides long-term financial stability for the nuclear plant and aligns with Google's commitment to responsible infrastructure growth paired with clean energy initiatives.