Key Takeaways
- • Finland's Licensing and Supervision Authority ordered Google subsidiary Tuike Finland to suspend all environmentally significant preparatory work at its Muhos and Kajaani data center sites until required environmental impact assessments are completed.
- • The order follows the clearing of an estimated 250,000 trees at Muhos, according to The Guardian, and the agency says earlier work including topsoil stripping, road construction and changes to ditches and culverts will alter the environment.
- • The suspension is part of Google's €13 billion (about $15.1 billion) Finnish AI infrastructure investment, announced in September and described by Google as its largest single investment in Europe.
- • Finnish public pushback is growing, with more than 96,000 people signing a citizens' initiative calling for tighter data center controls and a 'data center fee.'
Summary
Finland's Licensing and Supervision Authority has ordered Google subsidiary Tuike Finland to halt environmentally significant preparatory work at its planned data center sites in Muhos and Kajaani until required environmental impact assessments (EIAs) are finished. The order follows the clearing of an estimated 250,000 trees at Muhos, according to The Guardian. The regulator's notice comes as a setback for a project that Finland's government actively courted.
The two sites form part of Google's €13 billion (about $15.1 billion) investment in Finnish AI infrastructure, announced in September and billed by the company as its largest single investment in Europe. Google already operates a data center in Hamina. In a September statement, Google credited Finland's 'leadership in responsibly building AI infrastructure,' and Prime Minister Petteri Orpo said the decision was 'a clear testament to our strengths.'
Tommi Muilu, Head of the Environmental Department at the agency, said in a press release that extensive preparatory measures had already been taken based on available reports, including tree removal, topsoil stripping, construction of site roads and storage areas, changes to ditches and culverts, and stormwater arrangements. In the agency's view, these measures will change the environment and cause impacts that the EIA procedure is meant to identify and assess. The suspension does not cover planning, measurements, soil surveys or other low-impact, easily reversible work. Google did not respond to a request for comment from Fortune.
The regulatory action is accompanied by domestic opposition. More than 96,000 people have signed a citizens' initiative on the government's kansalaisaloite.fi platform seeking tighter control of data centers, including a 'data center fee' and grid-access rules modeled on Ireland's approach to protect electricity security and prices for consumers and other industries. The initiative also seeks compensation for communities affected by environmental damage and resource consumption.
Google has previously presented Finland as a model for environmentally considerate data center development. It bought a former paper mill in Hamina in 2009 and opened the facility in 2011. The site uses seawater from the Gulf of Finland for cooling and sends waste heat to local homes and businesses, with Google estimating heat recovery could cover up to 80% of Hamina's district heating network annual demand. In September, Google also signed a 22-year agreement with Fortum to help extend the life of the Loviisa nuclear plant, which Google says supplies about 10% of Finland's electricity.
The two sites form part of Google's €13 billion (about $15.1 billion) investment in Finnish AI infrastructure, announced in September and billed by the company as its largest single investment in Europe. Google already operates a data center in Hamina. In a September statement, Google credited Finland's 'leadership in responsibly building AI infrastructure,' and Prime Minister Petteri Orpo said the decision was 'a clear testament to our strengths.'
Tommi Muilu, Head of the Environmental Department at the agency, said in a press release that extensive preparatory measures had already been taken based on available reports, including tree removal, topsoil stripping, construction of site roads and storage areas, changes to ditches and culverts, and stormwater arrangements. In the agency's view, these measures will change the environment and cause impacts that the EIA procedure is meant to identify and assess. The suspension does not cover planning, measurements, soil surveys or other low-impact, easily reversible work. Google did not respond to a request for comment from Fortune.
The regulatory action is accompanied by domestic opposition. More than 96,000 people have signed a citizens' initiative on the government's kansalaisaloite.fi platform seeking tighter control of data centers, including a 'data center fee' and grid-access rules modeled on Ireland's approach to protect electricity security and prices for consumers and other industries. The initiative also seeks compensation for communities affected by environmental damage and resource consumption.
Google has previously presented Finland as a model for environmentally considerate data center development. It bought a former paper mill in Hamina in 2009 and opened the facility in 2011. The site uses seawater from the Gulf of Finland for cooling and sends waste heat to local homes and businesses, with Google estimating heat recovery could cover up to 80% of Hamina's district heating network annual demand. In September, Google also signed a 22-year agreement with Fortum to help extend the life of the Loviisa nuclear plant, which Google says supplies about 10% of Finland's electricity.
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