Finland orders halt to work on two Google data centres

Regulators in Finland have instructed Google to suspend construction activities at two proposed data centre locations following scrutiny regarding the clearing of over 300 hectares of woodland.

The suspension impacts planned facilities in Muhos and Kajaani, which are part of a landmark 13 billion euro investment package revealed by the tech giant less than a month ago. Described by Google as its biggest single capital outlay across Europe, the expansion aims to bolster infrastructure for services such as Maps, Search and the Gemini artificial intelligence assistant.

The Finnish Supervisory Agency stated that preparatory tasks at one of the locations proceeded in the absence of a compulsory environmental impact evaluation. Officials ordered any operations that would substantially modify the natural landscape to be halted by 23 October. Tommi Muilu, who leads the agency's environmental division, noted that early groundwork across the plots involved clearing timber, excavating topsoil, laying access routes, creating storage zones and modifying local drainage ditches.

The corporate entity overseeing the construction, Tuike Finland, must submit an explanation alongside its future plans by 14 October. The regulatory body warned that failure to satisfy its requests could trigger formal enforcement actions.

Environmental campaigners had raised alarms regarding the site preparation. Hanna Halmeenpaa, who leads the Finnish Association for Nature Conservation, previously stated to AFP that habitats meriting conservation had been cut down, prompting calls for work to pause until legal ecological conditions could be reviewed.

In response, Google acknowledged that it had failed to meet its usual expectations. In remarks to the BBC, the firm explained that it understood public worries and conceded it had "fallen short of our own high standards in this instance." The tech firm stated that it had operated in good faith in line with national forestry regulations, undertaken ecological assessments and introduced safeguards for ecologically sensitive zones. Google added that it plans to adhere to the agency's directives and will move forward with landscape and biodiversity initiatives, which encompass planting trees across 130 hectares in Muhos.

The broader multi-billion-euro initiative scheduled across 2027 and 2028 involves establishing data facilities in Kajaani, Muhos and Vaala, while also updating an existing site located in Hamina. Google estimated that building the infrastructure would generate over 37,000 jobs and inject an average of 3.6 billion euros annually into the Finnish economy. To power the sites, Google secured a 22-year supply deal with energy supplier Fortum for up to half the output of the Loviisa nuclear facility, backing the station's operation through 2050.

International technology firms have increasingly favoured Finland for large computing hubs due to its cold weather and low-carbon power grid. The colder Nordic temperatures naturally lower the electricity needed to cool massive server rooms.