Finland halts Google data centre work over forest clearance

Finnish regulators have ordered a suspension of construction activities at two planned Google data centre sites following concerns regarding the removal of extensive forest cover. The intervention targets preparatory work in the municipalities of Muhos and Kajaani, where authorities believe environmental protocols were not adequately observed before ground-breaking commenced. The Finnish Supervisory Agency stated that operations which would significantly alter the local environment must cease by 23 October, citing the absence of a mandatory environmental impact assessment.

The affected sites are integral to a major expansion project announced by the technology firm less than a month ago. Google described the initiative as its largest single investment in Europe, with a total value of 13 billion euros. The company had planned to invest this sum over the years 2027 and 2028 to build new facilities in Kajaani, Muhos and Vaala, while also upgrading its existing infrastructure in Hamina. The expansion is designed to support increasing demand for digital services, including search engines, mapping applications and artificial intelligence tools.

Tommi Muilu, the head of environment at the supervisory agency, detailed the specific activities that triggered the order. These included the felling of trees, the stripping of topsoil, the construction of access roads and storage areas, and modifications to drainage ditches. More than 300 hectares of forest have been cleared as part of these preparatory steps. The agency has demanded that Tuike Finland, the entity managing the projects, submit an explanation and a plan for future compliance by 14 October. Failure to meet this deadline could result in the initiation of formal enforcement proceedings.

Google has responded by acknowledging that it fell short of its own high standards in this instance. The company stated that it had acted in good faith under the Forestry Act and had conducted nature surveys to protect areas of high environmental value. It added that it is advancing landscaping and biodiversity plans, which include planting trees across 130 hectares at the Muhos site. Conservation groups, including the Finnish Association for Nature Conservation, had previously called for a halt to the work, arguing that protected nature sites had been damaged.

The investment is expected to have a substantial economic impact on the region. Google estimated that the construction phase would support more than 37,000 jobs and contribute an average of 3.6 billion euros annually to the Finnish economy. To power the new infrastructure, the company signed a 22-year power purchasing agreement with Fortum, covering up to half the capacity of the Loviisa nuclear power plant. This deal is intended to support the plant’s operation until 2050. Finland has become an increasingly popular location for data centres due to its cool climate and low-carbon electricity, which reduces the energy required for cooling server facilities.