Google Commits €13 Billion to Finnish AI Infrastructure in Major European Push

Google has announced a €13 billion investment in Finland, marking the tech giant’s largest single investment in Europe. The deal includes a significant energy partnership to power new artificial intelligence infrastructure, with the company agreeing to purchase up to half of the electricity output from a Finnish nuclear plant.

The United States-based technology firm confirmed on Wednesday that the funds will support the construction of three new data centres, the expansion of an existing facility, and various energy projects designed to meet rising demand for AI services. Google described the move as a testament to Finland’s leadership in responsibly building AI infrastructure.

Finnish Prime Minister Petteri Orpo hailed the decision as proof of the nation’s strengths. He noted that the collaboration would deliver lasting economic benefits beyond direct investment, fostering innovation, research, and development.

Central to the agreement is a 22-year contract with state-owned utility Fortum. Under the deal, Google will buy up to 50% of the electricity generated by the Loviisa nuclear power station. The arrangement offers long-term financial stability for the plant, which currently supplies approximately 10% of Finland’s electricity. Fortum stated that the commitment supports plans to extend the station’s lifespan and increase its generating capacity.

The new infrastructure will be built in Kajaani, Muhos, and Vaala, while an existing site in Hamina will be expanded. The Hamina facility was originally established in 2009 following the conversion of a former paper mill. Google stated that the technology will underpin services including Search, Maps, YouTube, and its Gemini AI chatbot.

Ruth Porat, president and chief investment officer of Alphabet and Google, emphasized the company’s commitment to responsible growth. She highlighted that the investment pairs technical expansion with new energy capacity, grid enhancements, and initiatives to improve energy affordability. The package also includes dedicated funds for nature conservation, community projects, education, and workforce development.

According to Google’s projections, the project is expected to create more than 37,000 jobs during construction, which is scheduled for 2027 and 2028. The company estimates the investment will boost Finland’s annual GDP by €3.6 billion.

Finland has become an increasingly attractive hub for data centres due to its cool climate, abundant low-carbon energy, and uncongested power grid. The cold temperatures help reduce the energy required for cooling server-heavy facilities. This trend was highlighted earlier this week when TikTok announced a $1 billion investment in a new data centre in Kouvola, citing the country’s robust data governance and skilled tech talent.

The announcement comes amid a global race among technology companies to secure power supplies for vast networks of data centres driven by the AI boom. Earlier this year, Google’s parent company, Alphabet, raised its global capital expenditure plans to as much as $205 billion to expand computing capacity for AI services.