Google signs 22-year nuclear deal with Fortum in Finland

Google Alphabet Inc. ↗ 0.84% on Wednesday announced plans to invest at least €13 billion ($15.1 billion) in AI infrastructure in Finland over 2027 and 2028, coupling the company's largest-ever single European investment with a 22-year nuclear power purchase agreement with Finnish utility Fortum that will keep a major power plant running for decades.

The deal marks Google's first nuclear energy agreement outside the United States, according to Reuters, and sent Fortum shares surging as much as 14% on the Nasdaq Helsinki exchange.wsj+2

A Lifeline for Loviisa

Under the PPA, Google will purchase electricity from Fortum's Loviisa nuclear power plant beginning in 2028, scaling up to 50% of the facility's generation capacity from 2030 through 2049. The plant currently supplies roughly 10% of Finland's electricity and employs about 580 people, but would have ceased operations by 2030 without the approximately €1 billion lifetime-extension investment program that the deal now underpins.solarquarter+2

Fortum said the PPA is expected to lift its group comparable return on net assets by approximately 1.4 percentage points over time once half the plant's output is contracted, supporting the company's long-term RONA target of 14%. The agreement also enables an additional 10 MW capacity increase alongside a previously planned 38 MW upgrade expected in 2028.solarquarter

Beyond the nuclear PPA, the two companies signed a memorandum of understanding to explore new nuclear reactors at Loviisa, renewable energy projects, and flexibility solutions including a 94 MW battery storage system near Google's new data center in Kajaani.marketscreener+1

Finland as Europe's AI Hub

Google's €13 billion commitment encompasses data centers across four locations — Hamina, Kajaani, Muhos, and Vaala — along with grid improvements, clean energy projects, and battery installations. The company projects the construction phase will contribute €3.6 billion annually to Finland's GDP and support more than 37,000 jobs, with approximately 7,000 permanent positions once facilities are operational.googlecloudpresscorner+1

"This investment is historical in Finland," Prime Minister Petteri Orpo told AFP, calling it proof that "we have done the right things" in building out the country's power grid and electricity production. Finland's cold climate, available land, and abundant low-carbon electricity have made it a magnet for data center developers, with CNBC reporting that industry observers have dubbed it "the Texas of Europe".cnbc+1

Broader Energy Strategy

Ruth Porat, president and chief investment officer of Alphabet, said the investment "underscores Google's commitment to grow our presence responsibly, pairing the expansion of our technical infrastructure with new energy capacity, grid enhancements, and energy affordability initiatives". Google said it worked with Finnish grid operator Fingrid and Business Finland to site its new facilities in northern and central Finland, where existing grid infrastructure and carbon-free energy sources can reduce system costs.blog+1

Google also announced new onshore wind contracts bringing its total contracted wind capacity in Finland to 629 MW, and committed €31 million over four years to community programs in education and economic development across the four host municipalities.investing+1