Project pairs data center expansion with grid and energy commitments
Google announced plans Wednesday to invest at least $15.1 billion in artificial intelligence infrastructure in Finland over the next two years, describing it as the company’s largest single investment in Europe to date.
The funds will finance new data centers and supporting infrastructure across four Finnish municipalities, the company said. New facilities will be constructed in Kajaani, Muhos and Vaala, while Google’s existing data center in Hamina will be expanded. Partnerships are planned in all four cities.
“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,” Ruth Porat, president and chief investment officer of Alphabet and Google, said in a statement.
Google projected that the two-year construction phase will contribute an annual average of $4.2 billion to Finland’s gross domestic product and support more than 37,000 jobs across the country. Once operational, the facilities are projected to support 7,000 jobs a year, with average wages 24% higher than Finland’s median wage, according to the company.
Finland’s Prime Minister Petteri Orpo said the investment is a testament to his nation’s strengths. Minister of Climate and the Environment Sari Multala said the plan demonstrates how to invest in AI infrastructure in a way that also benefits local communities and the broader energy system.
“This long-term approach and commitment are exactly what we need to generate value for both investors and Finnish society,” Multala said.
“A long-term agreement with an energy company helps ensure that new electricity generation capacity is developed to meet growing demand,” she added.
The package includes support for high-impact municipal energy projects in Hamina, Kajaani, Muhos and Vaala, where Google said low-income households will be provided with solar and heat-pump installations. The company also announced investments in Finland’s energy infrastructure, with agreements with local energy companies intended to strengthen the nation’s grid.
Among the energy deals is a 22-year power purchase agreement with Finnish energy company Fortum to support the life extension of the Loviisa nuclear power plant, which provides 10% of the nation’s electricity. Google also signed agreements supporting new onshore wind projects, bringing its total contracted new-to-the-grid wind capacity in Finland to 629 megawatts.