Finland halts construction on two Google data centres over environmental concerns

Finnish authorities have ordered a halt to construction work at two planned Google data centres due to concerns regarding the clearance of over 300 hectares of forest. The sites are part of Google's €13 billion investment in Finland, which was announced less than a month ago and is described as the company's largest single investment in Europe. The Finnish Supervisory Agency (LVV) stated that work at one site was conducted without a mandatory environmental impact assessment and ordered that measures which would 'significantly alter the environment' be suspended by 23 October. Google acknowledged that it had 'fallen short of our own high standards in this instance' and committed to following the agency's guidance. The orders pertain to preparatory work at the planned data centre sites in Muhos and Kajaani, which included tree and topsoil removal, construction of site roads and storage areas, and alterations to ditches. Tommi Muilu, head of environment at LVV, indicated that Tuike Finland, the company managing Google's data centre projects, has been asked to provide an explanation and outline its intended next steps by 14 October. The agency noted that it could initiate 'enforcement proceedings' if the company does not comply. Hanna Halmeenpaa, chair of the Finnish Association for Nature Conservation, previously expressed concerns to AFP about the felling of 'nature sites which should be preserved' and called for work to be paused while environmental requirements were reviewed. In a statement to the BBC, Google reiterated its understanding of the concerns and stated that it had acted in good faith under the Forestry Act, conducting nature surveys and implementing measures to protect areas of high environmental value. Google also mentioned its plans to advance landscaping and biodiversity efforts, including tree planting across 130 hectares in Muhos. The company announced last month that it would invest at least €13 billion in Finland through 2027 and 2028, with plans for new data centres in Kajaani, Muhos, and Vaala, as well as investments in its existing facility in Hamina. Google stated that the infrastructure would support growing demand for services such as Search, Maps, and its AI assistant Gemini, and the construction phase is expected to create over 37,000 jobs and contribute an average of €3.6 billion annually to Finland's economy. Additionally, Google signed a 22-year power purchasing agreement with Finnish energy company Fortum, covering up to half the capacity of the Loviisa nuclear power plant, which Fortum indicated would support the plant's operation until 2050. Finland's cool climate and low-carbon electricity have made it an attractive location for data centre development, as lower temperatures can reduce energy needs for cooling computer servers.