Google to Invest €13 Billion in Finnish AI Data Centers

Google announced on Tuesday its plan to invest at least €13 billion in its digital and AI infrastructure in Finland between 2027 and 2028. The commitment marks the technology giant's largest single investment in Europe and significantly expands its long-standing presence in the Nordic country.

Investment Scope and Economic Impact

The investment will fund the development of data centers and related infrastructure in the Finnish municipalities of Hamina, Kajaani, Muhos, and Vaala. This expansion is designed to power Google's core services, including its Gemini AI models, Search, Maps, and YouTube, while also supporting its global network of 43 cloud regions.

According to the company's projections, the project is expected to have a substantial economic effect on Finland:

• During the 2027-2028 construction phase, it is forecast to contribute an annual average of €3.6 billion to Finland’s GDP.
• The project is expected to support over 37,000 jobs nationwide during construction, with 16,000 of those directly in the construction sector.
• Once operational, the facilities are projected to support 7,000 jobs annually, with average wages reportedly 24% higher than Finland's median wage.

Strategic Energy and Grid Partnerships

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To power the expanded infrastructure, Google has secured several significant energy agreements. The company signed a 22-year power purchase agreement with Finnish energy firm Fortum to extend the life of the Loviisa nuclear power plant, which currently supplies 10% of Finland's electricity and would otherwise face decommissioning after 2030.

Additionally, Google announced new onshore wind power purchase agreements with Valorem and Suomen Hyötytuuli, adding 629 megawatts of new capacity to the grid. The plan also includes a 94-megawatt battery system to be connected to the Finnish grid near its Kajaani site, which is expected to be operational in late 2027.

Background and Community Engagement

This investment builds on Google's operations in Finland, which began in 2009 with the acquisition and conversion of a former paper mill in Hamina into a data center. The company also detailed a €31 million community investment over four years for local initiatives in the four municipalities, focusing on education, economic growth, and ecological restoration.

As part of this local commitment, Google.org's AI Opportunity Fund will provide AI skills training for over 4,400 workers. The company will also launch a workforce development program with the educational institution EKAMI to train up to 100 students for careers in the data center industry.