Finland halts work on Google data centre projects pending environmental assessments

The Finnish government has ordered a halt to work on two Google data centre sites until mandatory environmental impact assessments are completed. This decision follows concerns raised by the opposition regarding potential power shortages and rising energy prices linked to data centres. Google announced a €13 billion ($14.6 billion) investment in Finland's digital infrastructure in September, marking its largest investment in Europe. The Finnish Supervisory Agency (LVV) has required Tuike Finland, the company representing Google, to suspend all preparatory measures that could significantly alter the environment at the planned sites in Muhos and Kajaani by October 23, 2026. The agency is investigating whether Tuike Finland cleared hundreds of hectares of forest without the necessary environmental assessments. Tommi Muilu, head of LVV’s environment department, reported that trees have been removed, topsoil stripped, and site infrastructure altered. Hanna Halmeenpaa, chair of the Finnish Association for Nature Conservation, stated that over 300 hectares (741 acres) of nature sites have been logged. Tuike Finland must provide a detailed explanation of its plans by October 14, or it may face enforcement proceedings. Google spokesman Sondre Ronander acknowledged the company's shortcomings and stated that they would adhere to LVV’s guidance while advancing landscaping and biodiversity plans, including tree planting across 130 hectares (53 acres) in Muhos. The Nordic region has attracted data centres due to its cool climate and low-carbon electricity, but AI projects are now under increased scrutiny. Opposition parties have called for a national permit system to ensure sufficient electricity and transmission capacity for data centres. The Social Democratic Party has expressed concerns about the implications of increased power demand. Google's agreement includes a 22-year purchase agreement for up to 50% of the energy output from Finland’s Loviisa nuclear plant, extending its operational life until 2050.