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December 1, 2024
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Google Eyes €10bn Investment in Finland with Plans for New Data Centers

Google is considering investing over €10 billion in Finland to construct two new data centers in Kajaani and Muhos. While the tech giant has yet to finalize the decision, Finland's cheap energy, favorable infrastructure, and competitive electricity taxes make it an attractive location.
Google Eyes €10bn Investment in Finland with Plans for New Data Centers
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Google is planning a significant expansion of its data center presence in Finland, with potential investments exceeding €10 billion over several years. The new facilities are proposed for Kajaani and Muhos, adding to the company’s existing data center in Hamina, which has already received €4.5 billion in phased investments.

According to sources cited by Helsingin Sanomat, the investment hinges on several factors, including demand for data centers and the progression of zoning, land use, and energy supply negotiations. While no final decision has been made, Google’s plans highlight Finland’s growing appeal as a hub for data infrastructure.

Finland offers several advantages for data center development. The country’s relatively cheap energy, light electricity taxes, and efficient grid connections in northern regions like Kajaani and Muhos are major draws. Additionally, Finland’s government has likely provided some form of encouragement, although there is no confirmation of direct financial support.

Google’s director of infrastructure, Otto Kreiter, emphasized the company’s long-term commitment to Finland during a press conference in Helsinki, while noting that the investment remains in the early planning stages. Prime Minister Petteri Orpo reiterated the government’s willingness to support Google’s expansion.

Google has already secured 1,400 hectares of land in the Kajaani and Muhos area for approximately €27 million, a key step in moving forward with the project. Google’s country director, Antti Järvinen, called the land acquisitions the “first step in a long project,” adding that further details about the scale and timeline of the investment will follow after zoning and infrastructure issues are resolved.

The construction phase of the data centers is expected to provide the greatest boost to Finland’s economy by creating significant employment opportunities. However, much of the equipment for the centers will be sourced from abroad.

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