Finnish opposition warns Google’s €13B AI deal risks power strain

Alphabet's ↗ 1.53% Google announced on Wednesday that it will invest at least €13 billion ($15.1 billion) in AI data center infrastructure across Finland over the next two years, marking the company's largest single investment in Europe. By Thursday, Finnish opposition parties were already calling for a national permitting system for data centers, warning the massive buildout could strain the country's electricity supply and drive up energy prices.

The Deal

The investment, planned for 2027 and 2028, will fund three new data centers in the municipalities of Kajaani, Muhos and Vaala, along with an expansion of Google's existing facility in the southeastern city of Hamina. The sites will power services including Google's Gemini chatbot, Search, Maps and YouTube.euronews+1

Central to the deal is a 22-year power purchase agreement with Finnish utility Fortum for up to 50% of the output from the Loviisa nuclear power plant, starting in 2028 at reduced capacity and reaching full terms from 2030 through 2049. The agreement provides Fortum with the financial backing to extend Loviisa's operating life to 2050, two decades beyond its previously planned shutdown date. Google's Chief Investment Officer Ruth Porat described the strategy as "Bring Your Own Power," emphasizing the need for tech companies to secure their own electricity supply.chosun+3

Google estimates the investment will contribute roughly €3.6 billion annually to Finland's GDP during construction and support around 7,000 jobs once operational.googlecloudpresscorner+1

Opposition Pushback

Despite the economic promise, Finnish opposition parties moved quickly to flag risks. Centre Party leader Antti Kaikkonen told Reuters that a national permitting system for data center investments is needed. "At the moment, no one is really looking after the overall picture," he said. The Social Democratic Party, which leads polls ahead of an April election, echoed those concerns. Lawmaker Niina Malm said it was "particularly important that the availability of electricity is also examined as a broader internal security issue, so that people have enough energy and that it is priced at a level they can afford to use".live.euronext+1

Prime Minister Petteri Orpo has said the deal will boost Finland's economy and that electricity prices will remain under control.globalbankingandfinance

A Wider Race for Power

The announcement underscores how the AI infrastructure race among major tech companies has evolved into a contest over energy supply. Nordic countries, with their cold climates and low-carbon grids, have become prime targets for data center builders. Meta ↗ 0.57% has begun constructing gas power plants in Ohio and Louisiana, while Microsoft ↗ 0.65% is jointly developing a 2.67 GW gas facility with Chevron ↗ 0.61% in Texas. Google has separately signed a power purchase agreement with nuclear fusion startup Commonwealth Fusion Systems for future energy.dw+2