Google to Invest €13bn in Finland and Buy Up Half a Nuclear Plant for AI

Google has announced the largest investment in Europe in its history: €13bn (around $15bn) will go toward building out AI infrastructure in Finland. The package covers the construction of three new data centres, the expansion of an existing site and support for energy projects meant to feed AI services' growing appetite for electricity.

The centrepiece of the deal is a 22-year contract with the Finnish energy company Fortum, under which Google will buy up to half the output of the Loviisa nuclear power plant. Today that plant supplies about 10% of all of Finland's electricity. According to Fortum, Google's long-term commitments will provide financial certainty and make it possible to fund a programme to extend the plant's service life and expand its capacity.

Why Finland

The country has become an attractive location for data centres thanks to its cool climate, an abundance of low-carbon electricity and relatively uncongested power grids. The cold reduces the cost of cooling server halls — and cooling accounts for a significant share of the energy consumed. Google is not the only one to have recognised these advantages: this same week TikTok announced a $1bn investment in a new data centre in Kouvola, citing the “clean energy mix,” reliable data governance and a skilled workforce.

Google will build new data centres in Kajaani, Muhos and Vaala, and will also expand its existing site in Hamina, which the company set up in 2009 in a former pulp and paper mill. The capacity will serve the Gemini chatbot, as well as Search, Maps and YouTube.

Figures and pledges

By the company's own estimate, the project will support more than 37,000 jobs during the construction phase (2027–2028) and will add €3.6bn a year to the Finnish economy. Prime Minister Petteri Orpo called Google's decision “a clear testament to our strengths” and stressed that the value of the digital economy reaches far beyond the direct investment.

Google, for its part, is promising not only grids and generation but also “funds to support nature and local communities” — for biodiversity, education and workforce training. Alphabet and Google chief Ruth Porat said the company is seeking to grow “responsibly,” combining infrastructure expansion with new energy capacity and measures to keep electricity affordable.

All of this fits into the broader race among tech giants for sources of energy: demand for data centres, spurred by the AI boom, is growing rapidly. Earlier this year Alphabet raised its global capital-expenditure target to $205bn.

Source: Hacker News