Google commits 13 billion euros to Finnish AI infrastructure

Google has announced a record 13 billion euro investment in Finland, earmarked for the development of artificial intelligence infrastructure. The US technology company stated that the funding will be used to construct three new data centres, expand an existing facility, and support energy projects designed to meet the increasing demand for AI services. This commitment represents Google’s largest single investment in Europe and is intended to bolster the country’s position in responsible AI infrastructure development.

A central component of the deal involves a 22-year power purchase agreement with Finnish utility Fortum. Under this contract, Google will buy up to half of the electricity generated by the Loviisa nuclear power plant. The arrangement provides long-term financial certainty for the plant, which currently supplies approximately 10% of Finland’s electricity. Fortum indicated that the commitment would support an investment programme focused on extending the operational life of the nuclear station and increasing its generating capacity. The company also highlighted that the deal aligns with broader efforts to secure power supplies as the AI sector drives demand for vast data centre networks.

The new facilities will be located in Kajaani, Muhos, and Vaala, while Google will also expand its existing site in Hamina. This Hamina facility was established in 2009 following the conversion of a former paper mill. The infrastructure is designed to support a range of Google products, including the Gemini AI chatbot, as well as core services such as Search, Maps, and YouTube. Construction on the new projects is scheduled to take place during 2027 and 2028. Google projected that the investment would support more than 37,000 jobs during the construction phase and contribute 3.6 billion euros annually to Finland’s gross domestic product.

Finland’s Prime Minister Petteri Orpo described the decision as a testament to the country’s strengths, noting that the value of the data economy extends beyond direct investment to spur innovation and research. He emphasised that deepening collaboration with Google would deliver lasting benefits for both parties. Ruth Porat, president and chief investment officer of Alphabet and Google, stated that the investment underscores the company’s commitment to growing its presence responsibly. She added that the plan pairs technical infrastructure expansion with new energy capacity, grid enhancements, and energy affordability initiatives. The package also includes dedicated funds for local biodiversity, education, research, and workforce development.

This announcement follows a similar move by TikTok, which earlier this week revealed a one billion dollar investment to build a data centre in Kouvola. Finland has become an attractive location for such facilities due to its cool climate, plentiful low-carbon electricity, and relatively uncongested power grid. Colder temperatures can reduce the energy required to cool server facilities. Earlier this year, Alphabet raised its global spending plans to as much as 205 billion dollars to expand computing capacity for AI services.