Google will invest a record €13bn (£11bn, $15bn) in Finland’s artificial intelligence infrastructure and purchase up to half of the electricity generated by one of the country’s nuclear power plants.
The technology giant said the investment will fund three new data centers, expand existing facilities and support energy projects designed to meet the rising electricity demand created by AI services.
“This is Google’s largest single investment in Europe and demonstrates Finland’s leadership in developing AI infrastructure responsibly,” the company said on Wednesday.
Finnish Prime Minister Petteri Orpo said Google’s decision was “clear proof of our strength” and highlighted Finland’s growing role in the global technology sector.
As part of the agreement, Google has signed a 22-year deal with Finnish energy company Fortum to purchase up to 50% of the electricity produced by the Lovisa nuclear power plant.
Earlier this week, TikTok announced a $1bn investment in Finland to build a new data center in Kouvola. The company cited Finland’s “strong digital infrastructure, clean energy mix, strong data governance and skilled technical talent.”
Finland has become an increasingly attractive destination for data centers because of its cool climate, abundant low-carbon electricity and relatively uncongested power grid. Cooler temperatures can reduce the energy required to cool the computer servers operating inside these facilities.
As the global AI boom drives demand for large data center networks, technology companies are competing to secure reliable and affordable electricity supplies.
Google estimates that its investment will support more than 37,000 jobs during construction and increase Finland’s annual GDP by €3.6bn. Construction is expected to take place in 2027 and 2028.
“The value of the data economy extends far beyond direct investment, helping to promote innovation, research and development,” Orpo said.
“Deepening our cooperation with Google will deliver lasting benefits for both parties.”
Google plans to build new data centers in Kajaani, Muhos and Vaasa while expanding its existing facility in Hamina. The Hamina site was established in 2009 at a former paper mill.
The expanded data center infrastructure will support products such as Google’s Gemini AI chatbot, as well as services including Search, Maps and YouTube.
Google said the investment will also create “a dedicated nature and community fund” supporting clean energy projects, local biodiversity, education, research and workforce development.
“Google is proud to deepen our roots in Finland,” said Ruth Porat, president and chief investment officer of Alphabet and Google.
“This investment underscores Google’s commitment to responsibly expanding our presence by combining technology infrastructure growth with new energy capacity, grid improvements and energy affordability initiatives,” she added.
Earlier this year, Google’s parent company, Alphabet, increased its global spending plan to as much as $205bn to expand computing capacity for AI services.
The long-term agreement with Fortum will provide financial certainty for the Lovisa nuclear power plant, which currently generates approximately 10% of Finland’s electricity.
Fortum said Google’s commitment will support investment programs aimed at extending the operating life of the nuclear plant and increasing its electricity generation capacity.
Source: www.bbc.co.uk