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The investment will fund development of new data centres in Kajaani, Muhos and Vaala as well as expansion of Google’s existing facility in Hamina according to a statement issued by the company. Construction is scheduled across 2027 and 2028 to support growing demand for services including Gemini Search Maps and YouTube. The company said the projects form part of a wider programme that also encompasses electricity grid improvements and community funds.
Google said the outlay is expected to add an average of €3.6 billion a year to Finland’s gross domestic product during the construction phase while supporting more than 37,000 jobs nationwide of which around 16,000 are in construction. Once operational the facilities are projected to sustain some 7,000 jobs annually with average wages 24 percent above the national median a Google assessment found. From 2023 to 2025 alone the company’s Hamina operations engaged more than 600 Finnish suppliers across construction operations and network infrastructure according to Google’s blog.
A 22-year power purchase agreement with Fortum will cover up to 50 percent of the output from the Loviisa nuclear plant whose operator said the deal provides certainty for a lifetime extension through 2050 Reuters reported. Google is also securing 629 megawatts of new onshore wind capacity and a 94-megawatt battery installation near Kajaani the company stated. Alphabet has raised its global capital expenditure guidance to between $195 billion and $205 billion this year as it expands AI computing capacity a Reuters analysis of company filings showed.
Finland has emerged as a preferred location for data centres because of its cold climate that reduces cooling costs and its access to low-carbon electricity Bloomberg noted. The announcement lifted shares in Fortum by more than 10 percent and contributed to a rally across the Finnish stock market according to market data cited by the wire service. Prime Minister Petteri Orpo said the investment was a clear testament to the country’s strengths in innovation research and development while playing down concerns about energy consumption.
Ruth Porat president and chief investment officer of Alphabet and Google said in the statement “Google is proud to deepen our roots in Finland with the company’s largest single investment in Europe building on more than 15 years of sustained investment in Finland.” She added that the investment underscores the company’s commitment to grow its presence responsibly by pairing infrastructure expansion with new energy capacity grid enhancements and energy affordability initiatives. Google Finland country manager Antti Järvinen described the programme as one of the largest single investments in the nation’s industrial history in remarks carried by Yle.
The company is allocating €31 million over the next four years to support local biodiversity education research and workforce development in Hamina Kajaani Muhos and Vaala according to its announcement. Finland’s unemployment rate has exceeded 10 percent the highest in the European Union according to Eurostat figures and the investment is expected to generate significant tax revenues for municipalities and central government Orpo noted. Google first established its Finnish presence in 2009 by converting a former paper mill in Hamina into a data centre and has since invested more than €4.5 billion there a company timeline showed.
