Google invests billions to Finland

Record European Investment: Google to Invest €13 Billion in AI Infrastructure in Finland. Google will invest at least €13 billion ($15.1 billion) in AI ‌infrastructure in nippy Nordic country Finland in 2027-2028, its largest single investment in Europe to date. In a press release, the firm noted that the deepening of its “long-term commitment” to Finland also marks its biggest investment in Europe to date.

The money will be used to develop data centres as well as supporting infrastructure, and represents the search engine giant’s largest single investment in Europe to date. “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.

The AI infrastructure build-out would involve the development of three new data centres in the country’s north. The locations were selected based on the availability of electrical power and cold climate (temperature ​can drop well below minus 10 degrees Celsius (14 degrees Fahrenheit) in winter). After investment Google has operations spanning Hamina (current data center site), Kajaani, Muhos, and Vaala.

The investments will include data centres, electricity grid improvements and clean energy and battery projects driving services such as Gemini, Search, Maps and YouTube, Google ​said in a statement. The investment is expected to ⁠contribute some €3.6 billion to Finland’s gross domestic product during the construction phase. 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.

Illustration made with Google Gemini AI:

There is a question how this will affect the price of the electrical power. Some see this is a right time to plan to build a new nuclear power plant. Building new nuclear facilities typically involves enormous upfront costs, long construction times, and market uncertainty over long horizons. Alongside facility expansion, Google is partnering with local energy companies (including Fortum) to secure power supplies, develop new generation capacity, and support long-term grid stability and decarbonization in Finland. Google has signed a 22-year Power Purchase Agreement (PPA) with Fortum. This long-term commitment supports the lifetime extension of the Loviisa nuclear power plant. While Google is also backing onshore wind power (629 MW) and grid-balancing battery storage (a 94 MW system in Kajaani), data centers require steady baseload power even in cold weather without wind. Nuclear power fills this critical need for predictable, zero-emission electricity.

Sources:

Bloomberg: Google to Invest €13 Billion in AI Infrastructure in Finland
YLE: Google to invest $15 billion in AI infrastructure and buy nuclear power in Finland
Google: Google Deepens Commitment to Finland with Two-Year €13 Billion investment in AI Infrastructure
Kauppalehti: Kommentti / Fortumin megadiilistä heräsi heti huoli sähkön hinnasta
ETN: Googlen jätti-investointi: aika on kypsä uudelle ydinvoimalle
Uusiteknologia: Google rakentaa Suomeen 13 miljardilla eurolla uusia datakeskuksia
Reuters: Google to invest $15 billion in AI infrastructure and buy nuclear power in Finland
BBC: Google picks Finland for its largest single investment in Europe