Google to invest 13 billion euros in AI infrastructure in Finland

Alphabet’s Google is set to make its largest-ever investment in Europe, allocating a minimum of 13 billion euros (US$15.1 billion) to build artificial intelligence infrastructure in Finland over the next two years. The company plans to construct at least three new data centers, alongside expanding its existing facility in Hamina.

This substantial investment, which comes on the back of 43 billion euros worth of similar projects already in the works, capitalizes on Finland's advantageous climate, low carbon electricity, and robust water resources. Google aims to reduce water waste through closed loop systems in its data centers. The Finnish government projects that these projects will create 16,000 construction jobs.

The announcement has been well-received locally, with shares in Fortum Oyj, which will supply Google with half the power from its Loviisa nuclear plant, jumping over 11 percent. Other Finnish companies like Nokia Oyj and Elisa Oyj also saw increases. Google's move aligns with its broader strategy to boost AI computing capacity, with the company recently raising its 2024 capital spending forecast to as much as US$205 billion.