Economy

Finland Orders Halt to Google Data Centre Work Over Environmental Concerns

Finland Orders Halt to Google Data Centre Work Over Environmental Concerns

Finland has ordered Google’s local representative to stop environmentally significant preparatory work at two planned data-centre sites, after authorities raised concerns about work carried out while environmental impact assessments were still unfinished.

The order concerns planned Google data centres in Muhos, North Ostrobothnia, and Kajaani, Kainuu. Finland’s Lupa- ja valvontavirasto (LVV) said on 6 October that Tuike Finland Oy must immediately stop—and no later than 23 October 2026—preparatory measures that significantly alter the environment at the two sites.


Forest clearing under investigation

The decision follows an investigation into extensive preparatory work at the sites.

According to the Finnish authorities, work has included tree removal, stripping of topsoil, construction of roads and storage areas, and alterations to drainage structures. The environmental impact assessment procedures for both projects are still ongoing.

The Finnish Association for Nature Conservation had previously raised concerns about the scale of forest clearing at the sites. Yle reported that the regulator began requesting explanations from Google, local authorities and building-control authorities after allegations of potentially unlawful logging emerged.

However, it has not been finally established that Google broke the law. The authorities' investigation is still ongoing. Google has said that the forestry work was carried out in accordance with the Forestry Act.


Google must explain how it will proceed

LVV has given Tuike Finland an opportunity to respond to the suspension request and provide a written explanation.

The company has been asked to address whether it intends to comply with the order. If the company does not comply, the authority says it may consider further enforcement measures.

The environmental impact assessments for the Muhos and Kajaani projects are expected to be completed during 2026, according to LVV.


Part of Google's €13 billion Finland investment

The two projects are part of Google's recently announced €13 billion investment in Finland, covering new data-centre infrastructure in Muhos, Kajaani and Vaala, as well as investment in Google's existing operations in Hamina.

Google says the expansion will support growing demand for services including Google Search, Maps and Gemini, and is part of its wider investment in AI infrastructure.

Google has also announced a long-term electricity agreement with Fortum, connected to its Finnish data-centre expansion and the future operation of the Loviisa nuclear power plant.


Google acknowledges concerns

Google has acknowledged the regulator's concerns. The company said it had “fallen short of our own high standards” in this case and said it would study LVV's findings and follow the authority's guidance.

Google also said it had acted in good faith under the Forestry Act, conducted nature surveys and introduced measures to protect high-value areas. The company says its biodiversity plans include planting trees across 130 hectares at Muhos.


What happens next?

The immediate issue is therefore not cancellation of Google's Finland investment. Instead, environmentally significant preparation work at the Muhos and Kajaani sites must be stopped while the environmental assessment process continues.

The case could become an important test of how Finland balances its efforts to attract major AI and data-centre investments with environmental assessment and forest-protection requirements.


References

Finnish Lupa- ja valvontavirasto (LVV), Yle, BBC, Finnish environmental administration, Google

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