Finland Orders Google to Halt Data Center Construction Amid Allegations of Clearing Over 300 Hectares of Forest

October 8, Kathmandu — The Finnish government has directed Google to halt construction work on two proposed data centers due to environmental concerns.

Authorities ordered an immediate stop to the construction after more than 300 hectares of forest were reportedly cleared during the initial stages of development.

Google had announced plans to invest 1.3 billion euros in building data centers in Finland, considered the company’s largest single investment in Europe to date. However, less than a month into the project, officials have ordered construction to be suspended.

According to Finland’s Supervisory Authority (LVVH), although environmental impact assessments are compulsory for the proposed data center sites in Kajaani and Muhos, preliminary work began at least at one site without completing the required assessments.

The agency has issued an order to halt any activities causing ‘significant changes’ to the environment until October 23.

Tommi Muilu, head of environment at the supervisory agency, pointed out that the construction activities included tree felling, removal of topsoil, development of roadways and storage areas, and modifications to drainage systems.

Google’s project management company in Finland, Tyke Finland, has been asked to provide explanations and submit future plans by October 14. Authorities have warned that failure to comply may result in strict penalties.

Hanna Halmenpää, chairperson of the Finland Association for Nature Conservation, previously reported that trees had been cut down in areas designated for protection. Environmental groups have also been demanding a halt to construction until thorough environmental assessments are completed.

Google Responds – “We Have Not Met Our Own High Standards”

Google acknowledged its mistakes in an interview, stating, “We have not met our own high standards.”

The company asserted that it acted in good faith under forestry laws, conducted surveys of natural sites, and is taking necessary steps to protect areas with significant environmental value.

Google also said it is advancing long-term plans to protect the environment and biodiversity in the regions involved. As part of this initiative, it intends to plant new trees over 130 hectares in Muhos.

Last month, Google announced that it will invest at least 1.3 billion euros in Finland during 2027 and 2028.

The plan involves constructing new data centers in Kajaani, Muhos, and Vaala, as well as expanding the existing data center in Haminamaa.

Google cited rising demand for services such as Search, Maps, and its AI assistant ‘Gemini’ as the reason for this new infrastructure.

During the construction phase, it is estimated that over 37,000 jobs will be created in 2027 and 2028, and the project is expected to contribute an average of 360 million euros annually to Finland’s economy.

22-Year Electricity Purchase Agreement

As part of the expansion plans, Google has signed a 22-year electricity purchase agreement with Finnish energy company Fortum. Under this agreement, Google can purchase up to half the capacity of the Loviisa nuclear power plant.

Fortum states this arrangement will help maintain operations at the nuclear power plant until 2050.

Finland’s cold climate and availability of low-carbon electricity have made it an attractive destination for data center development.

Google highlights that the cool temperatures reduce the energy required to keep the large numbers of computer servers in data centers adequately cooled.