In a landmark move that underscores the global race to scale artificial intelligence capacity, Google has unveiled a €13bn ($15bn) investment in Finnish AI infrastructure — the largest single European investment in the company’s history. The massive spending package will fund construction of three brand-new data centres, expansion of an existing Google facility, and targeted energy projects designed to meet the surging global demand for AI-powered services.
As a core component of the deal, Google signed a 22-year power purchase agreement with Finnish state-owned energy utility Fortum to acquire up to 50% of the total electricity output generated by the Loviisa nuclear power plant, one of Finland’s oldest and most productive nuclear facilities. The plant currently supplies roughly 10% of Finland’s total domestic electricity, and Google’s long-term commitment will provide Fortum with stable financial certainty to fund life-extension upgrades and capacity expansions at the site, securing its operation for decades to come.
Google’s announcement comes just days after TikTok, the short-form video platform owned by ByteDance, revealed its own $1bn investment in a new Finnish data centre to be built in the southern city of Kouvola. Both global tech giants have cited Finland’s unique competitive advantages for large-scale data centre development: a consistently cool natural climate that cuts the energy required to cool heat-intensive server farms, an abundant supply of low-carbon energy, a largely uncongested national power grid, robust data governance frameworks, and a deep pool of skilled tech sector workers. These attributes have turned the Nordic nation into one of the most sought-after locations in Europe for AI and data infrastructure investment.
The Google investment is projected to deliver substantial economic benefits to Finland over the development period: the company estimates it will support more than 37,000 construction jobs and add €3.6bn annually to Finnish gross domestic product during the 2027–2028 construction window. Beyond direct infrastructure development, the funding package also allocates resources to local clean energy projects, dedicated community and nature conservation funds, and initiatives to support biodiversity, education, academic research, and regional workforce development.
The new data centres will be sited in the Finnish locations of Kajaani, Muhos, and Vaala, while Google will expand its existing facility in Hamina — a site first established in 2009, when the company converted a decommissioned paper mill into a data hub. The expanded and new infrastructure will underpin core Google services ranging from its flagship Search, Maps, and YouTube platforms to the company’s growing AI product line, led by its Gemini large language model chatbot.
“This is Google’s largest single investment in Europe and a testament to Finland’s leadership in responsibly building AI infrastructure,” the company stated in its official announcement Wednesday. Finnish Prime Minister Petteri Orpo welcomed the deal, emphasizing the broader economic spillover benefits of the growing data economy. “Google’s decision is a clear testament to our strengths,” Orpo said in a statement. “The value of the data economy extends far beyond direct investment into spurring innovation, research and development. Deepening our collaboration with Google will deliver lasting benefits for both parties.”
Ruth Porat, President and Chief Investment Officer of Google’s parent company Alphabet, framed the investment as aligned with Google’s goal of responsible, sustainable infrastructure growth. “Google is proud to deepen our roots in Finland,” Porat said. “This investment underscores Google’s commitment to grow our presence responsibly, pairing the expansion of our technical infrastructure with new energy capacity, grid enhancements, and energy affordability initiatives.”
The deal comes as the global AI boom has sent demand for data centre capacity and reliable power supplies soaring, forcing big tech firms to lock in long-term energy contracts to support their expanding server networks. Earlier this year, Alphabet raised its total global capital expenditure budget to as much as $205bn, a move explicitly tied to expanding computing capacity to meet fast-growing AI service demand.