Finland orders halt to work on Google data centre sites

Finnish opposition has called for measures to prevent power shortages, soaring energy prices caused by data centres.

A Finnish government authority has ordered work on two Google data centre sites to stop until compulsory environmental impact assessments have been completed.

The United States tech giant announced in September a 13 billion euro ($14.6bn) investment in digital infrastructure in Finland over the next two years to power its artificial intelligence (AI) ambitions.

Google has called the data centre projects in the municipalities of Muhos, Vaala, Kajaani and Hamina its single biggest investment in Europe.

But the Finnish Supervisory Agency (LVV), which is responsible for environmental issues, said it had demanded that Tuike Finland, the company representing Google, “immediately suspend, and no later than 23 October 2026, all preparatory measures that would significantly alter the environment in connection with the planned data centre projects in Muhos and Kajaani”.

The agency has been investigating whether Tuike Finland cleared hundreds of hectares of forest in Muhos and Kajaani without a mandatory environmental impact assessment.

The head of LVV’s environment department, Tommi Muilu, said trees have been removed, topsoil stripped, site roads and storage areas constructed and ditches altered.

Hanna Halmeenpaa, chair of the Finnish Association for Nature Conservation, told the AFP news agency that “nature sites which should be preserved” had been logged in a deforested area of more than 300 hectares (741 acres).

Tuike Finland must provide an explanation and detail how it intends to proceed by October 14.

It could face “enforcement proceedings” if it fails to comply, LVV said.

Google spokesman Sondre Ronander acknowledged in a statement to AFP the company’s shortcomings and said it would “study the LVV’s findings and follow their guidance”.

Ronander said Google was “advancing” its landscaping and biodiversity plans, which included tree planting across 130 hectares (53 acres) at Muhos.

The Nordic region has for years been a magnet for data centres due to its cool climate, abundant low-carbon electricity and reliable power grids, but AI builders are now facing greater scrutiny from consumers and politicians.

Opposition parties last month called for a national permit system to prevent power shortages and soaring energy prices.

While data centres are welcome in Finland, the country must make sure there is enough electricity and transmission capacity to power them, Centre Party leader Antti Kaikkonen told the Reuters news agency at the time.

The Social Democratic Party said that while it welcomed data centre investments, it too remains concerned about the implications for power demand.

Google’s deal included a 22-year purchase agreement for up to 50 percent of the energy output from Finland’s Loviisa nuclear plant, helping to extend the expected life of the plant until 2050, from a previous shutdown date in 2030.