Google pledges €13bn AI and data‑centre expansion in Finland

Google disclosed a €13bn (about $15bn) investment to expand its data‑centre footprint in Finland over the next two years. The funding will support new facilities in four municipalities, Hamina, Kajaani, Muhos and Vaala, and fund clean‑energy projects to power the sites, including the company’s AI chatbot Gemini.

Why the move matters

The announcement comes as Finland seeks to revive its economy after a period of high unemployment and sluggish growth. Petteri Orpo, the country’s prime minister, said the deal reflects the success of recent investments in the power grid, renewable generation and workforce training. With its cool climate and abundant low‑cost electricity from nuclear, wind and hydro sources, Finland has become an attractive hub for data‑centre operators.

Antti Jarvinen, Google’s director for Finland, explained that the existing Hamina site, originally a repurposed paper mill, has already been expanded seven times and now hosts seven data centres. "Now we are building more in Hamina, expanding that site on a remarkable level, and we are opening up data‑centre operations in three new locations in the municipalities of Kajaani, Muhos and Vaala," he told reporters.

Scale of the investment

Google estimates the construction phase, slated for 2027‑2028, will add roughly €3.6bn to Finland’s annual GDP and support more than 37,000 jobs. About 16,000 of those positions will be in construction, while the operational phase is expected to sustain around 7,000 direct and indirect jobs each year.

"This investment is historic for Finland," said Petteri Orpo after the announcement.

Implications for the sector

The expansion adds to a wave of data‑centre projects that have already transformed Finland’s energy landscape. Network operator Fingrid forecasts a 40 per cent rise in electricity demand as new facilities come online, prompting concerns about grid strain and household energy costs. Security officials from the Security and Intelligence Service (Supo) have warned that foreign‑owned data centres could pose national‑security challenges.

To secure a stable power supply, utility Fortum signed a 22‑year contract to provide electricity from the Loviisa nuclear power plant, extending the plant’s operation until its 2050 licence expiry. Without the deal, the plant, which currently delivers about 10 per cent of Finland’s electricity, would have faced an earlier shutdown.

What comes next

Google will finalise the exact number and locations of the new data centres in the coming months. Once built, the facilities will feed power‑intensive AI workloads, including Gemini, and could spur further private‑sector investment in the region’s renewable and nuclear capacity. Policymakers will need to balance the economic boost against the projected rise in power consumption and the accompanying environmental and security considerations.