Google's €13bn AI Boost: Finland's Cool Climate Powers Europe's Biggest Tech Bet

Google has announced its largest single investment in Europe, choosing Finland as the location for a major expansion of its artificial intelligence infrastructure. The tech giant will spend a record €13 billion to build three new data centers, expand an existing facility, and support energy projects that will power the growing demand for AI services. As part of the deal, Google has signed a 22-year contract with Finnish utility company Fortum to purchase up to half of the electricity produced by the Loviisa nuclear power plant. This move is expected to help Google meet its energy needs in a sustainable way while supporting Finland's clean energy goals. Finland has become an attractive destination for technology companies because of its cool climate, abundant low-carbon electricity, and a power grid that is not overcrowded. The cold weather helps reduce the energy needed to cool data centers, which are filled with computer servers that generate a lot of heat. This makes Finland an ideal place for companies like Google that are looking to expand their AI capabilities.

The investment is expected to create more than 37,000 jobs during the construction phase and boost Finland's GDP by €3. 6 billion each year. Construction is scheduled to take place in 2027 and 2028. Google's new data centers will be built in Kajaani, Muhos, and Vaala, while the existing facility in Hamina will be expanded. The infrastructure will support products such as Google's AI chatbot Gemini, as well as services like Search, Maps, and YouTube. Google also plans to invest in clean energy projects and set up funds to support local biodiversity, education, research, and workforce development. The company says this investment is a testament to Finland's leadership in responsibly building AI infrastructure. Finland's Prime Minister Petteri Orpo welcomed the news, saying Google's decision highlights the country's strengths in technology and energy. He believes the partnership will bring lasting benefits to both Google and Finland.

Earlier this week, TikTok also announced a €1 billion investment in Finland to build a new data center, citing the country's strong digital infrastructure, clean energy mix, robust data governance, and skilled tech talent. Technology companies are racing to secure power supplies as the AI boom drives demand for vast networks of data centers. Google's parent company, Alphabet, has raised its global spending plans to as much as $205 billion to expand computing capacity for AI services. The agreement with Fortum provides long-term financial certainty for the Loviisa plant, which currently generates about 10 percent of Finland's electricity. Fortum says Google's commitment will support an investment program aimed at extending the life of the nuclear station and increasing its generating capacity. Google's leaders say they are proud to deepen their roots in Finland and are committed to growing their presence responsibly. The investment will help Google pair the expansion of its technical infrastructure with new energy capacity, grid enhancements, and energy affordability initiatives. This partnership is expected to deliver lasting benefits for both Google and Finland, supporting innovation, research, and development for years to come.