Finnish regulators have ordered a halt to construction at two Google data centres after the company cleared more than 300 hectares of forest without completing a mandatory environmental impact assessment. The Finnish Supervisory Agency for Welfare and Health (LVV) issued the suspension on 29 September, demanding that all preparatory work that “would significantly alter the environment” be stopped by 23 October.
The two sites in Muhos and Kajaani form part of Google’s €13bn investment in Finland, announced less than a month earlier as the company’s largest single investment in Europe. The project includes data centres in Kajaani, Muhos, and Vaala, as well as expansion at an existing facility in Hamina.
LVV’s head of environment, Tommi Muilu, said the work involved tree and topsoil removal, construction of site roads, creation of storage areas, and changes to drainage ditches. The agency said Google’s contractor, Tuike Finland, must explain the actions taken and detail how it will proceed by 14 October. LVV warned it could begin enforcement proceedings if the company does not comply.
Hanna Halmeenpaa, chair of the Finnish Association for Nature Conservation, told AFP that “nature sites which should be preserved” had been felled at the sites. The conservation group had previously called for a halt to the work while environmental requirements were examined.
Google acknowledged the concerns in a statement to the BBC, saying it had “fallen short of our own high standards in this instance” and would follow the agency’s guidance. The company said it acted “in good faith under the Forestry Act,” conducted nature surveys, and implemented measures to protect areas of high environmental value.
“As we continue our long-term work in the region, we are advancing our landscaping and biodiversity plans, which include tree planting across 130 hectares at Muhos,” Google added.
The €13bn investment will take place over 2027 and 2028, with Google projecting the construction phase will support more than 37,000 jobs and contribute an average of €3.6bn annually to Finland’s economy. The data centres aim to meet growing demand for services such as Search, Maps, and its AI assistant Gemini.
Google also signed a 22-year power purchasing agreement with Finnish energy company Fortum to cover up to half the capacity of the Loviisa nuclear power plant. Fortum said the deal would help sustain the plant’s operation until 2050.
Finland’s cool climate and low-carbon electricity have attracted interest from data centre developers, as lower temperatures reduce the energy needed to cool servers. The government has encouraged such investments to benefit the economy, but environmental scrutiny has intensified amid concerns about forest loss and ecosystem damage.
The suspension marks a rare regulatory setback for Google’s expansion in Europe. The company faces increasing pressure to balance rapid infrastructure growth with local environmental standards. LVV’s next steps will depend on the explanations submitted by Tuike Finland by mid-October.
According to Joy Online.
