Finland, Uusimaa: Google’s record investment expands AI data centres while securing long-term nuclear electricity from Fortum’s Loviisa plant
Google is investing €13bn in Finland as it accelerates the expansion of artificial intelligence infrastructure across Europe, marking the technology giant’s largest single investment on the continent and strengthening the country’s position as a major destination for data centres.
The package will finance three new data centres, expand Google’s existing facility in Hamina and support energy-related projects designed to meet the rapidly increasing electricity requirements associated with artificial intelligence services and large-scale computing infrastructure across the technology sector.
A central element of the investment is a long-term agreement between Google and Finnish utility Fortum. Under the 22-year contract, Google will purchase up to 50% of the electricity generated by Fortum’s Loviisa nuclear power plant.
The agreement provides Google with greater certainty over future electricity supplies while giving Fortum a long-term commercial commitment supporting continued investment in the nuclear facility. Loviisa currently generates approximately 10% of Finland’s total electricity production.
Fortum said Google’s commitment would support an investment programme focused on extending the operating life of the Loviisa nuclear station and increasing its generating capacity, potentially strengthening Finland’s low-carbon electricity supply for years to come.
Google described Finland as an important location for the company’s expanding technological infrastructure, highlighting the country’s energy system, digital capabilities and broader environment for responsible development as demand for artificial intelligence computing continues to increase.
“This is Google’s largest single investment in Europe and a testament to Finland’s leadership in responsibly building AI infrastructure,” the company said, underlining the strategic importance of the investment to its wider European technology operations.
Finnish Prime Minister Petteri Orpo welcomed the announcement, saying Google’s decision demonstrated the country’s strengths and represented an important opportunity to deepen cooperation between Finland and one of the world’s largest technology companies.
The investment will see Google establish new data centres in Kajaani, Muhos and Vaala, while also expanding its existing site in Hamina. The company opened the Hamina facility in 2009 after converting a former paper mill into a modern data centre.
The Hamina expansion will add to Google’s established presence in Finland, where the company has already developed significant computing infrastructure. The new facilities are expected to increase capacity for services including Google Search, Maps, YouTube and its Gemini artificial intelligence chatbot.
The timing reflects a broader race among technology companies to secure electricity and suitable locations for data centres. The rapid development of generative artificial intelligence has created enormous demand for computing power, increasing pressure on companies to obtain reliable energy supplies.
Data centres require substantial quantities of electricity because they operate thousands of servers continuously. Artificial intelligence workloads can be particularly energy-intensive, making access to dependable, affordable and increasingly low-carbon electricity an important consideration when technology companies select locations for new infrastructure.
Finland has become increasingly attractive to data-centre operators because of its relatively cool climate, extensive low-carbon electricity generation and comparatively uncongested power grid. Colder outdoor temperatures can also reduce the energy required to cool densely packed computer servers.
Google’s Finnish investment arrives amid a wider expansion in artificial intelligence infrastructure by major technology companies. Alphabet, Google’s parent company, earlier increased its global spending plans to as much as $205bn as it sought to expand computing capacity for AI-related services.
The Finnish project therefore forms part of a much broader strategy in which technology companies are investing billions of dollars and euros in data centres, computing hardware, energy infrastructure and electricity agreements to support rapidly growing artificial intelligence demand.
Google said its Finnish investment was expected to support more than 37,000 jobs during the construction phase. The company also estimates that the investment could contribute approximately €3.6bn annually to Finland’s gross domestic product.
Construction of the new infrastructure is scheduled to take place during 2027 and 2028. The projects will therefore represent a significant medium-term construction programme while potentially creating longer-term employment and economic opportunities around Finland’s expanding digital infrastructure sector.
Beyond data centres and electricity procurement, Google said the investment would include clean energy projects and dedicated nature and community funds. These initiatives are intended to support biodiversity, education, research and workforce development in areas connected with the company’s Finnish operations.
Google President and Chief Investment Officer Ruth Porat said the company was proud to deepen its presence in Finland. She described the investment as part of Google’s commitment to expanding technical infrastructure while pursuing responsible development.
The company said its approach would combine additional computing infrastructure with new energy capacity, improvements to the electricity grid and initiatives intended to promote energy affordability. The strategy reflects growing recognition that AI expansion requires investment beyond data-centre buildings themselves.
For Finland, the announcement comes as international technology companies increasingly compete for locations offering reliable energy, strong digital infrastructure and favourable operating conditions. Earlier this week, TikTok separately announced a $1bn investment in a new data centre in Kouvola.
TikTok cited Finland’s digital infrastructure, clean energy mix, data governance and skilled technology workforce when announcing its investment. The decision reinforces the growing concentration of international technology infrastructure in Finland and highlights competition among companies seeking suitable European locations.
The arrival of additional data centres could also strengthen Finland’s role in Europe’s emerging AI economy. As computing demand expands, countries capable of combining electricity availability, connectivity, skilled workers and environmental considerations are increasingly important to technology companies.
The Loviisa agreement is particularly significant because nuclear power can provide a steady source of electricity regardless of weather conditions. For Google, securing a long-term share of nuclear generation could provide greater predictability as its Finnish computing requirements increase.
For Fortum, meanwhile, the agreement offers long-term financial certainty for the Loviisa plant. That stability could help underpin investment in extending the station’s operating life and potentially improving its electricity generation capacity, strengthening the facility’s strategic role.
The deal also illustrates how the expansion of artificial intelligence is reshaping relationships between technology companies and energy producers. Rather than relying solely on existing electricity markets, major technology firms are increasingly pursuing long-term arrangements intended to secure sufficient power for future computing demand.
Prime Minister Orpo said the value of Finland’s growing data economy would extend beyond direct investment, arguing that major technology projects could encourage innovation, research and development while creating broader economic benefits.
Google’s expansion could consequently have implications beyond the company’s immediate operations. New data centres require supporting infrastructure, energy capacity and skilled workers, while associated investment can stimulate activity among construction companies, technology suppliers and other businesses connected with the digital economy.
Finland’s cold climate and relatively clean electricity system give it an unusual combination of advantages for energy-intensive computing. The country is now seeking to build on those strengths as artificial intelligence transforms demand for digital infrastructure throughout Europe.
With construction planned for 2027 and 2028, Google’s €13bn commitment represents a long-term bet on Finland’s ability to support the next generation of artificial intelligence services. The Loviisa agreement further connects the country’s technology ambitions with its nuclear energy infrastructure.
The scale of the investment underscores how rapidly AI is changing the technology sector’s physical requirements. Computing capacity, electricity generation and transmission networks are increasingly becoming interconnected parts of the same strategic investment decisions.
For Google, Finland offers the opportunity to expand computing infrastructure while accessing reliable low-carbon electricity. For Finland, the investment promises jobs, economic activity, infrastructure development and a stronger position in Europe’s rapidly developing artificial intelligence economy.
The agreement with Fortum and the construction of new facilities will therefore make Finland an increasingly important component of Google’s European infrastructure strategy. As AI demand continues rising, the country’s combination of energy resources, climate and digital capabilities could attract further investment.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members