Finnish authorities have ordered a halt to building work at two planned Google data centres amid concerns over the clearance of more than 300 hectares of forest. The sites form part of Google's record €13bn investment in Finland, announced less than a month ago. The Finnish Supervisory Agency (LVV) said work at one site was carried out without a mandatory environmental impact assessment.
The orders relate to preparatory work carried out at the planned data centre sites in Muhos and Kajaani. According to LVV's head of environment Tommi Muilu, work at the sites included the removal of trees and topsoil, the construction of site roads and storage areas, and changes to ditches. Tuike Finland, the company behind Google's data centre projects, has been asked to provide an explanation and set out how it intends to proceed by 14 October.
Google said it had "fallen short of our own high standards in this instance" and would follow the agency's guidance. The company had acted in good faith under the Forestry Act, carried out nature surveys, and put measures in place to protect areas of high environmental value. Google also stated that it was advancing its landscaping and biodiversity plans, which include tree planting across 130 hectares at Muhos.
The Finnish Association for Nature Conservation had previously called for work to be halted while the environmental requirements were examined. Hanna Halmeenpaa, chair of the association, said that "nature sites which should be preserved" had been felled. The conservation group had expressed concerns over the impact of the data centres on the environment.
Google announced last month that it would invest at least €13bn in Finland over 2027 and 2028. The company's plans included new data centres in Kajaani, Muhos, and Vaala, alongside investment in its existing facility in Hamina. The infrastructure would help Google meet growing demand for services including Search, Maps, and its AI assistant Gemini.
As part of its expansion, Google signed a 22-year power purchasing agreement with Finnish energy company Fortum covering up to half the capacity of the Loviisa nuclear power plant. Fortum said the agreement would help support the plant's continued operation until 2050. The construction phase in 2027 and 2028 was expected to support more than 37,000 jobs and contribute an average of €3.6bn a year to Finland's economy.
Finland has attracted growing interest in data centres, with its cool climate and low-carbon electricity among the factors making it attractive to developers. The halt in work on the two Google data centres highlights the challenges companies face in balancing investment and environmental concerns. The LVV could begin "enforcement proceedings" if Tuike Finland fails to comply with its demand.
Key points
- Google's €13bn investment in Finland includes plans for new data centres in Kajaani, Muhos, and Vaala.
- The Finnish Supervisory Agency ordered a halt to work on the data centres due to concerns over environmental impact assessments.
- Google has signed a 22-year power purchasing agreement with Fortum to support the Loviisa nuclear power plant.
