Google, a subsidiary of Alphabet Inc., will invest at least €13 billion ($15.1 billion) in artificial intelligence (AI) infrastructure in Finland over the next two years, marking the company’s largest single investment in Europe to date. The announcement was made on September 9, 2024, with construction slated for 2027 and 2028.
Key developments
The investment will fund data centers, electricity grid improvements, clean energy projects, and battery storage systems across multiple Finnish regions, including Hamina, Kajaani, Muhos, and Vaala. These facilities will support Google’s AI-driven services such as Gemini, Search, Maps, and YouTube.
Economic and employment impact
During the construction phase, the project is projected to contribute an average of €3.6 billion annually to Finland’s GDP and support more than 37,000 jobs. Once operational, the facilities are expected to sustain 7,000 jobs annually, with wages averaging 24% above Finland’s median.
Energy and sustainability measures
Google has secured a 22-year power purchase agreement with Fortum to extend the life of the Loviisa nuclear power plant, which currently supplies roughly 10% of Finland’s electricity. Additionally, the company has signed new onshore wind power agreements with Valorem and Suomen Hyötytuuli, bringing its total contracted wind capacity in Finland to 629 MW. A 94 MW battery storage system near Kajaani is also planned for completion by late 2027.
Regional and policy context
Finland’s cold climate and abundant low-carbon energy have made it an attractive location for data centers, as companies seek to reduce energy costs and meet climate goals. Google collaborated with grid operator Fingrid and Business Finland to identify optimal sites in northern Finland, where existing infrastructure aligns with carbon-free energy sources.
Government response
Petteri Orpo, Finland’s Prime Minister, stated in a press release that the investment is “a clear testament to our strengths” and highlighted the broader economic benefits, including innovation, research, and development beyond direct financial contributions.
Background and company presence
Google has operated in Finland for over 15 years, having converted a former paper mill in Hamina into a data center in 2009. The new investment expands this footprint to enhance AI capabilities across Europe.
Global investment context
Alphabet increased its global investment range to between $195 billion and $205 billion in 2024 to meet growing computing demand driven by AI advancements.