Finnish Authorities Halt Google Data Centre Construction Over Environmental Concerns

Finnish authorities have stepped in to halt construction work on two planned Google data centres due to environmental concerns related to forest clearance. The sites, located in Muhos and Kajaani, are part of a record €13bn investment by the tech giant in Finland, announced just last month.

The Finnish Supervisory Agency (LVV) has ordered preparatory work at both sites to be suspended after discovering that one site was developed without conducting a mandatory environmental impact assessment. LVV's head of environment Tommi Muilu explained that work included removing trees and topsoil, constructing roads and storage areas, and altering ditches.

Google acknowledged falling short of its own high standards in this instance and has pledged to follow the agency's guidance. The company behind Google's data centre projects, Tuike Finland, has been asked to provide an explanation for the situation and outline its plans moving forward by 14 October.

The LVV warned that if Tuike Finland fails to comply with the demand, it could initiate enforcement proceedings. The halt in construction is set to take effect by 23 October, leaving both parties with a window of opportunity to rectify the situation before further action is taken.

Finland's construction halt on two Google data centres is set to take effect by 23 October, giving both parties a chance to address environmental concerns before further action is taken.

Google has acknowledged falling short of its own standards in this instance, with the company stating it had acted in good faith under Finland's Forestry Act. The tech giant carried out nature surveys and implemented measures to protect areas of high environmental value. This move is part of Google's broader plans for the region, which include landscaping and biodiversity initiatives.

As part of its long-term investment plan, Google announced last month that it would invest at least €13bn in Finland over 2027 and 2028. The company aims to meet growing demand for services such as Search, Maps, and its AI assistant Gemini with new infrastructure. This includes data centres in Kajaani, Muhos, and Vaala, alongside investment in an existing facility in Hamina.

Google's landscaping and biodiversity plans for the region are also underway, with a focus on tree planting across 130 hectares at Muhos. The company has stated its commitment to advancing these initiatives as part of its continued work in the area.

The halt on construction of Google's two data centres in Finland has significant implications for the country's economy and job market. The planned construction phase was expected to generate over 37,000 jobs and contribute an average of €3.6 billion annually to Finland's economic output.

Google had also secured a long-term power purchasing agreement with Fortum, covering up to half the capacity of the Loviisa nuclear power plant. This deal is set to support the continued operation of the facility until 2050, as per Fortum's statement.

Finland's appeal as a location for data centres lies in its cool climate and access to low-carbon electricity, making it an attractive destination for developers. The country has been gaining interest from investors seeking to capitalize on these advantages.