Google announced on Wednesday that it will invest at least €13 billion ($15.1 billion) in AI data centers in Finland through 2028, its largest single investment in Europe. The plan includes three new data center sites in Kajaani, Muhos and Vaala and an expansion of the existing Hamina facility, which began as a converted paper mill 15 years ago.
The construction phase is expected to run through 2027 and 2028, supporting more than 37,000 jobs across Finland and adding about €3.6 billion ($4.1 billion) annually to Finland’s GDP. Around 16,000 of those jobs will be in construction, generating an estimated €911 million ($1 billion) a year in labor income. Once operational, the sites are projected to support about 7,000 permanent jobs, with average pay roughly 24% above Finland’s national median wage.
Energy is central to the expansion. Google signed a 22-year power purchase agreement with Finnish energy company Fortum to support a life extension of the Loviisa nuclear plant, which supplies about 10% of Finland’s electricity. Fortum’s stock rose 11% after the announcement. Google also secured new onshore wind capacity and a 94-megawatt battery system near Kajaani, expected to be operational in late 2027. Fingrid, Finland’s grid operator, will connect the new sites to the national grid, while Elisa and Nokia will provide connectivity infrastructure. The facilities will include heat recovery systems to redirect excess heat to local homes.
Finland has become an increasingly popular destination for AI infrastructure because of its cold climate, available land and largely low-carbon power grid. Microsoft and ByteDance have also pursued data center projects in the country, and industry insiders have called Finland the “Texas of Europe.”
Google is also committing €31 million ($35.5 million) to community programs in Hamina, Kajaani, Muhos and Vaala over four years, including AI training for more than 4,400 workers and training slots for 100 Finnish students. Alphabet President and Chief Investment Officer Ruth Porat said the 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.” Finland’s Prime Minister Petteri Orpo welcomed the deal, saying deeper collaboration with Google will bring lasting benefits.
The move fits into Alphabet’s broader AI infrastructure push. In July, Alphabet raised its full-year capital spending target to $205 billion. Alphabet shares barely moved on the news, slipping 0.03% to $338.36, while Wall Street analysts rate the stock a Strong Buy with an average price target of $426.04.
