Google is set to invest at least €13 billion in digital infrastructure in Finland over 2027–2028, marking the company’s largest single investment in Europe and further strengthening Finland’s position as a hub for AI, cloud and digital infrastructure in the Nordics. The investment will cover new data centers and supporting infrastructure in Hamina, Kajaani, Muhos and Vaala, alongside partnerships focused on clean energy, electricity-grid resilience, biodiversity, education and workforce development.
The investment builds on more than 15 years of operations in Finland. The company established its Hamina data center in 2009 after acquiring and converting a former paper mill. The site has since supported more than 40 social and community organizations and introduced initiatives including seawater-based cooling and heat recovery for Hamina’s district heating network.
The new infrastructure is expected to play a role in powering Google’s services, including Gemini, Search, Maps and YouTube, while also providing computing infrastructure for Finnish and European AI development. Google’s Hamina site is part of the company’s global network of 43 cloud regions, enabling Finnish organizations including Nokia, Elisa and the City of Hamina to run high-performance, low-latency services and AI applications.
During the initial 2027–2028 construction phase, the investment is expected to contribute an average of €3.6 billion annually to Finland’s GDP and support more than 37,000 jobs nationwide. Around 16,000 of those positions are expected to be in construction, while once the facilities become operational, they are projected to support around 7,000 jobs annually across Google, suppliers and local services.
“Finland is an attractive destination for investments, and attracting further investment remains a top priority. Google’s decision is a clear testament to our strengths. 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,” says Petteri Orpo, Prime Minister of Finland.
Google’s investment also comes with a significant energy component, as the company seeks to expand its Finnish infrastructure while supporting additional carbon-free electricity generation and grid flexibility.
Google is partnering with Fingrid and Business Finland to identify locations for new infrastructure where data centers can connect to the grid efficiently. The company said locating new facilities in northern Finland allows it to make use of existing grid capacity close to carbon-free energy sources, potentially reducing the need for new grid investments.
Google has also signed a 22-year power purchase agreement with Fortum connected to the life extension programme for the Loviisa nuclear power plant. The plant currently supplies around 10% of Finland’s electricity and employs approximately 580 people. Google and Fortum will additionally explore cooperation around new flexibility and power-generation capacity, including potential new nuclear reactors at Loviisa.
“These investments are very welcome in Finland and demonstrate that it is possible to invest in AI infrastructure in a way that benefits both local communities and the broader energy system, including other energy users. This long-term approach and commitment are exactly what we need to generate value for both investors and Finnish society. A long-term agreement with an energy company helps ensure that new electricity generation capacity is developed to meet growing demand,” says Sari Multala, Minister of Climate and the Environment of Finland.
The company will also enter additional onshore wind PPAs with Valorem and Suomen Hyötytuuli, bringing the total new-to-the-grid onshore wind capacity supported by Google in Finland to 629 MW. Google said it is working with partners to enable its wind portfolio to participate in Fingrid’s ancillary markets and contribute to balancing the grid.
Near Google’s Kajaani site, a 94 MW battery energy storage system is planned to connect to Finland’s grid, with operations expected to begin in late 2027. The system is intended to provide additional flexibility during periods of high demand, including cold and low-wind conditions.
“Our partnership with Google is a true success story that began back in 2009. The collaboration has been absolutely great and exceptionally smooth, and we are very happy to see it deepening here in Hamina! The expansion of data center operations will further strengthen the economy and vitality of both the city and the entire region, bringing new opportunities and permanent jobs. We are truly looking forward to our shared future,” says Ilari Soosalu, Mayor of Hamina.
Joni Partanen, Mayor of Kajaani, adds that Google’s investment in battery storage, nature conservation and community partnerships reinforces the region’s position in sustainable digital infrastructure and the data economy.
“Google’s investments in battery energy storage, nature conservation projects, and community partnerships demonstrate a clear, ongoing commitment to Kajaani. This decision underscores our region’s position as an emerging leader in sustainable digital infrastructure and the data economy. We are excited to build a lasting partnership that delivers real value for our community and supports a greener digital future,” says Partanen.
The investment will also expand Google’s presence in Muhos and Vaala, two Finnish municipalities that see the projects as opportunities to diversify their economies and attract future investment.
“This is a landmark moment for the Muhos municipality. The Google project not only represents a significant investment but also strengthens our position as a location for future growth, innovation, and sustainable development. We are excited to see this vision becoming reality,” says Kimmo Hinno, Town Manager of Muhos.
“Google’s investment decision is very important for the Municipality of Vaala. It will help diversify local businesses and services. Vaala is located at a key point in Finland’s main electricity grid, which makes it an attractive location for industry and energy projects. At the same time, Vaala is a tourism municipality on the shores of Lake Oulujärvi, within a UNESCO Global Geopark area. Cooperation with Google has been excellent, with respect for the area’s unique features and natural values,” says Minna Kärkkäinen, Mayor of Vaala.
Beyond data centers and energy infrastructure, Google plans to invest €31 million over four years in community partnerships across Hamina, Kajaani, Muhos and Vaala. The funding will support education and economic growth initiatives, with €10 million earmarked specifically for research and innovation.
The company will also support municipal energy projects, including solar and heat-pump installations for low-income households, energy-efficiency upgrades in public buildings, improved lighting for recreational trails and backup-power solutions for essential municipal services.
Google said its new European data centers will also incorporate readiness for heat recovery into their design.
Nature restoration is another part of the programme. Google plans to restore former forestry land adjacent to its data center sites, with projects covering native forest regeneration, peatland and wetland restoration, nature conservation and ecological corridors. Community projects will also include recreational trails, public saunas and fishing and swimming piers.
On workforce development, Google’s AI Opportunity Fund will support programmes intended to equip more than 4,400 workers across Finland with AI skills. The initiatives involve local partners including Oamk, Tieke and Xamk. Google will also work with EKAMI on a programme designed to train up to 100 Finnish students over one year for data center careers.
“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. 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. At the community-level, Google is proud to support programs focused on advancing workforce development, education, and research – helping to unlock long-term economic opportunity both in Finland and across the broader European economy,” says Ruth Porat, President and Chief Investment Officer of Alphabet and Google.
For Fortum, the long-term agreement with Google provides greater visibility for investment in low-carbon generation and the future of the Loviisa plant.
“Finland has a unique opportunity to turn its decarbonised, reliable electricity system and robust industrial infrastructure into a foundation for the next wave of sustainable industrial growth. Long-term partnerships like the one between Fortum and Google are essential to making that happen, especially in today’s uncertain market environment characterized by low visibility and highly volatile electricity prices. They provide the visibility needed to invest in new low-carbon power generation capacity, strengthen energy security and support new digital and industrial investments that create jobs, innovation and prosperity for Finland. Furthermore, our collaboration with Google provides a strong foundation for the continued development and reliable operation of our Loviisa power plant for decades to come,” says Markus Rauramo, President and CEO of Fortum.
Fingrid says the northern locations are also significant from a grid-development perspective.
“We welcome Google’s new projects in Muhos, Kajaani and Vaala where they can grow as there is significant grid capacity for electricity consumption in the production dominated north. Our aim is to keep the costs of the growing electricity system competitive, while reducing environmental impacts, and these locations at strong grid points both help the whole electricity system and ensure cost-effective network development,” says Asta Sihvonen-Punkka, President and CEO of Fingrid.
The expansion will further involve Finnish technology and connectivity companies. Elisa will provide connectivity for the new data centers, while Nokia will collaborate with Google on optical and IP networking infrastructure.
“We are pleased to deepen our partnership with Google by providing connectivity for its new data centres in Finland. Reliable, high-capacity connections will strengthen Finland’s digital infrastructure and security of supply while supporting local businesses and communities. Beyond creating jobs and investment, this project will help accelerate Finland’s AI ambitions by enabling low-latency access to AI and cloud services in a domestic operating environment,” says Topi Manner, CEO of Elisa.
“Every AI token is a network moment. Billions of agents, devices, and people act on intelligence in real time, and every one of those moments depends on a network that is fast, secure and always on. Nokia builds those networks. And with Google we’re co-innovating to deliver Optical and IP networks that move intelligence faster, farther and securely. Google is investing to create that future in Finland and we are proud to help them connect it to the world,” says Justin Hotard, President and CEO of Nokia.
Business Finland views the investment as further evidence of Finland’s ability to attract major technology infrastructure projects.
“Finland wants to be a partner to the world’s leading technology companies. Google’s investments are a strong sign of confidence in Finland and strengthen the infrastructure on which the digital economy and artificial intelligence are built. What is important for us is that these investments also generate new expertise, business activities and value creation in Finland,” says Lassi Noponen, Director General of Business Finland.
For Finland and the wider Nordic region, Google’s expansion reflects the growing infrastructure requirements accompanying the rapid development of AI. By combining data center capacity with long-term energy procurement, grid investments and local development programmes, the company is positioning the Finnish expansion as a broader infrastructure project rather than a standalone data center build-out.
Read the orginal article: https://arcticstartup.com/google-invests-at-least-e13-billion-to-finland/
