Finland Halts Google Data Center Work Over Forest Clearance

Finnish authorities have ordered a halt to building work at two planned Google data centers, citing concerns over the clearance of more than 300 hectares of forest. The sites are part of Google's significant investment in Finland, an announcement made less than a month prior and described by the company as its largest single investment in Europe.

The Finnish Supervisory Agency (LVV) stated that work at one site proceeded without a mandatory environmental impact assessment and has suspended measures that would "significantly alter the environment" until October 23.

Google acknowledged that it had "fallen short of our own high standards in this instance" and pledged to adhere to the agency's guidance. The orders specifically target preparatory work at the planned data center locations in Muhos and Kajaani.

According to Tommi Muilu, head of environment at LVV, the site work involved tree and topsoil removal, the construction of access roads and storage areas, and modifications to ditches. Tuike Finland, the entity managing Google's data center projects, has been requested to provide an explanation and outline its future plans by October 14. The agency indicated it may initiate "enforcement proceedings" if the company fails to comply.

Hanna Halmeenpaa, chair of the Finnish Association for Nature Conservation, had previously expressed that "nature sites which should be preserved" had been cleared. This conservation group had called for work to be stopped while environmental requirements were reviewed.

In a statement, Google commented, "We understand the concerns and have fallen short of our own high standards in this instance." The company asserted that it had "acted in good faith under the Forestry Act," conducted nature surveys, and implemented protective measures for areas of high environmental value.

Google also stated it is advancing landscaping and biodiversity plans, which include planting trees across 130 hectares at Muhos.

Last month, Google announced a commitment to invest at least €13 billion over 2027 and 2028 in Finland. This investment includes new data centers in Kajaani, Muhos, and Vaala, as well as upgrades to its existing facility in Hamina. The company indicated this infrastructure would support the growing demand for services such as Search, Maps, and its AI assistant Gemini.

Google estimated that the construction phase, spanning 2027 and 2028, would support over 37,000 jobs and contribute approximately €3.6 billion annually to Finland's economy. Additionally, Google secured a 22-year power purchasing agreement with Finnish energy company Fortum, covering up to half the capacity of the Loviisa nuclear power plant, which Fortum stated would aid its continued operation until 2050.

Finland has become an attractive location for data centers, benefiting from its cool climate and access to low-carbon electricity, factors that reduce the energy needed for server cooling.