Google picks Finland for its largest single investment in Europe

Google will buy up to half the electricity produced by one of Finland’s nuclear power plants as part of a record €13bn (£11bn; $15bn) investment in the country’s AI infrastructure, the company announced.

The US tech giant said the package would fund three new data centres, expand an existing site and support energy projects to power growing 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.

As part of the deal, Google signed a 22-year contract 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, pointing to the country’s “strong digital infrastructure, clean energy mix, robust data governance and skilled tech talent”.

Finland has emerged as an attractive location for data centres because of its cool climate, plentiful low-carbon electricity and relatively uncongested power grid. The colder temperatures can reduce the energy needed to cool facilities packed with computer servers.

Technology companies are racing to secure power supplies as the AI boom drives demand for vast networks of data centres.

The Google investment is expected to support more than 37,000 jobs during construction and boost Finland’s GDP by €3.6bn a year, according to Google. Construction is set to take place in 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 build new data centres in Kajaani, Muhos and Vaala, while expanding its existing facility in Hamina, which it established after converting a former paper mill in 2009.

The infrastructure will help support products such as its AI chatbot Gemini, alongside services including Search, Maps and YouTube.

Google said the investments also covered “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, Google’s parent company Alphabet raised its global spending plans to as much as $205bn as it sought to expand computing capacity for AI services.

The agreement with Fortum provides long-term financial certainty for the Loviisa plant, which currently generates about 10% of Finland’s electricity.

Fortum said Google’s commitment would support an investment programme aimed at extending the life of the nuclear station and increasing its generating capacity.

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Source: BBC

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