Finland Orders Google to Halt Data Center Construction Over Environment

Finnish authorities ordered Google to halt data center construction in Muhos and Kajaani over missing environmental assessments following massive forest clearing.

Calcalist•Author: Foreign News
Source •
Finland Orders Google to Halt Data Center Construction Over Environment
Photo: Calcalist / צילום: Alessandro RAMPAZZO / AFP

Finnish authorities have ordered Google to halt construction work on two data centers, just a month after the tech giant committed to investing $15 billion in AI infrastructure in the country. The Regional State Administrative Agency for Finland (LVV) issued an order yesterday to Google's subsidiary, Tuike Finland Oy, demanding an immediate halt to construction works for the planned data centers in Muhos and Kajaani until environmental risk assessments are completed. The order covers activities including tree felling, topsoil removal, excavation, blasting, crushing, soil transport, trenching, road paving, and the establishment of storage areas, according to a report by CNBC. The Finnish decision comes after revelations that the subsidiary cleared approximately 3,300 dunams of forest in Muhos without completing an environmental impact assessment. In Kajaani, the company has reportedly cleared trees across an area of about 2,000 dunams. According to the Finnish Association for Nature Conservation, the sites have been reduced to piles of sand, with the oversight attributed to the massive demand for data centers in Finland that pushes companies to work as fast as possible, sometimes bypassing required permits.

Google's Response and Broader Context

We understand the concerns and in this case we did not meet the high standards we have set, a Google spokesperson stated, adding that the company will comply with the order. We acted in good faith under the Forestry Act, conducted reviews, and took steps to protect areas of high importance.

Driven by the AI boom, Finland has emerged as a major European hub for data center construction, thanks to its available land and abundant energy resources. Several new data center projects have recently been announced in the country, earning it the moniker the Texas of Europe, referencing Texas's status as the leading state for data centers in the U.S. Google's planned $15 billion investment is considered the company's largest-ever outlay in Europe. The capital is set to be injected into the country through 2028 via data centers and related investments such as energy projects, according to a statement released by Google.

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