Google commits $15B to Finland in its largest European investment

Alphabet's ↗ 0.02% Google on Wednesday announced plans to invest at least €13 billion ($15.1 billion) in artificial intelligence infrastructure in Finland over the next two years, marking the company's single largest investment in Europe.reuters+1

The deal also includes Google's first nuclear power contract outside the United States — a 22-year agreement with Finnish energy company Fortum to purchase up to 50% of the energy output from the Loviisa nuclear power plant.channelnewsasia+1

Data Centers and Economic Impact

The investments, planned for 2027 and 2028, will fund the expansion of Google's existing data center in the southeastern city of Hamina and the construction of three new facilities in Kajaani, Vaala and Muhos. The infrastructure will power Google services including Gemini, Search, Maps and YouTube.googlecloudpresscorner+2

Google estimates the construction phase will contribute an average of €3.6 billion annually to Finland's GDP and support more than 37,000 jobs nationwide, with roughly 16,000 in the construction sector. Once operational, the facilities are projected to sustain around 7,000 jobs annually, with average wages 24% above Finland's median.freemalaysiatoday+1

"Google's decision is a clear testament to our strengths," Finnish Prime Minister Petteri Orpo said at Wednesday's announcement in Helsinki. "This means jobs, lots of jobs for Finns across Finland."helsinkitimes

Energy and Clean Infrastructure

The nuclear agreement with Fortum provides long-term revenue certainty needed to support a life extension program for the Loviisa plant, which currently supplies 10% of Finland's electricity and could not continue operations beyond 2030 without the investment, according to Google's statement. The two companies also signed a memorandum of understanding to explore new nuclear capacity at the Loviisa site. Fortum shares rose 10% following the announcement.channelnewsasia+1

Beyond nuclear, Google's energy plans include onshore wind power purchase agreements bringing its total new wind capacity in Finland to 629 MW, and a 94-megawatt battery system near Kajaani expected to be operational in late 2027.googlecloudpresscorner

A Nordic AI Hub

Finland's cold climate, abundant low-carbon electricity and stable regulatory environment have made it a magnet for data center investment from companies including Microsoft ↘ 1.15% and ByteDance. Google has operated in Finland since 2009, when it converted a former paper mill in Hamina into a data center, and has invested €4.5 billion there over the past 15 years.reuters+1

Alphabet this year raised its global capital expenditure guidance to between $195 billion and $205 billion as it races to build out computing capacity. Ruth Porat, Alphabet's president and chief investment officer, called the Finland deal "a really important cornerstone to everything that we are doing here."channelnewsasia+1