World : Google Announces €13 Billion AI, Energy Investment In Finland

Google has announced an ambitious €13 billion ($15.1 billion) investment in AI infrastructure and nuclear energy in Finland, marking the largest single investment the company has made in the European Union. This significant move comes as Google's global investment surged to around $200 billion this year as it intensifies its pursuit in the AI race.

The Finnish capital's decision to attract such a massive investment is driven by its abundant supply of cheap nuclear, wind, and hydroelectric energy, which aligns well with Google's energy needs for its energy-intensive data centers.

Since converting a former paper mill in Hamina into a data center in 2009, Google has steadily expanded its presence in Finland, capitalizing on the country's low population of 6 million people to avoid resistance faced in the US and other regions. Finland's right-wing Prime Minister Petteri Orpo has been a strong advocate for attracting data center investment, as the country grapples with record unemployment and sluggish economic growth.

Google's investment plan, set to be implemented in 2027 and 2028, includes the construction of data centers, improvements to the electrical grid, and clean energy and battery projects for its chatbot, search, and map services. The investment is expected to boost Finland's GDP by €3.6 billion and create 37,000 jobs, with 7,000 being permanent positions and the rest emerging during the construction phase.

Orpo emphasized that the investment would further spur economic growth and digitalization in Finland, assuring that Google will maintain sufficient electricity production and control energy prices.

In addition to Google's investment, the deal also involves a purchase agreement for 50% of the energy output from one of Finland's two nuclear power plants for the next 22 years. This partnership with Fortum, the plant operator, will enable them to continue operating the Loviisa Nuclear Power Plant until 2050, as the plant would otherwise have been decommissioned by 2030. The deal has already boosted Fortum's stock by 15.5%, making it the largest gain among European stocks on that day.