Google Invests Record €13bn in Finnish AI Infrastructure, Secures Nuclear Power Deal

The US company said the package would fund three new data centres in Kajaani, Muhos and Vaala, and expand an existing facility in Hamina, which it established after a previous investment. Construction is scheduled for 2027 and 2028.

"This is Google's largest single investment in Europe and a testament to Finland's leadership in responsibly building AI infrastructure," the company said.

As part of the deal, Google signed a 22-year contract with Finnish utility Fortum to buy up to 50% of the output from the Loviisa nuclear power plant.

Finland's Prime Minister Petteri Orpo welcomed the decision, saying: "Google's decision is a clear testament to our strengths." He added: "The value of the data economy extends far beyond direct investment into spurring innovation, research and development. Deepening our collaboration with Google will deliver lasting benefits for both parties."

According to Google, the investment is expected to support more than 37,000 jobs during construction and boost Finland's GDP by €3.6bn per year.

Finland has become an attractive destination for data centres due to its cool climate, abundant low-carbon electricity and uncongested power grid, which reduce the energy needed for cooling servers. The country recently attracted a $1bn data centre investment from TikTok in Kouvola.

Technology companies are competing to secure power supplies as the AI boom drives demand for vast networks of data centres.

Why This Matters

The investment underscores the massive energy demands of AI infrastructure, with tech giants increasingly turning to nuclear power as a stable, low-carbon source.
For Finland, the deal represents a major economic boost, potentially reshaping its role as a European hub for data centres and digital infrastructure.
The 22-year power purchase agreement signals a long-term shift in how tech companies secure energy, moving beyond traditional grid purchases into direct contracts with generators.

Background

Finland has emerged as a prime location for data centres because of its cool climate, which cuts cooling costs, and its clean energy mix, which includes nuclear, hydro and wind power. The country's relatively uncongested power grid also offers reliability. Google has operated a data centre in Hamina since 2011. The AI boom has dramatically increased electricity consumption from data centres, prompting tech companies to seek dedicated power sources. Nuclear power, while controversial in some regions, provides consistent, carbon-free baseload electricity.

Key Perspectives

Google: Secures long-term, predictable energy costs for its AI infrastructure while presenting the investment as a commitment to responsible, low-carbon growth. Finnish Government: Gains a record foreign investment, job creation, and GDP growth, positioning Finland as a leader in digital infrastructure. Prime Minister Orpo framed the deal as mutually beneficial. Critics/Skeptics: Nuclear power deals may face opposition from environmental groups concerned about nuclear waste and safety. Some may question whether the promised job numbers and GDP boost will materialise as projected.

What to Watch

Whether Google proceeds with construction on schedule in 2027 and 2028, or faces delays from permitting or supply chain issues.
If other tech companies (e.g., Microsoft, Amazon) follow with similar nuclear power purchase agreements in the Nordics.
Finland's energy prices and grid stability as additional data centres come online, potentially straining local electricity supply.

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