Finland orders Google to stop work on two AI data centers over alleged deforestation

The Finnish Licensing and Supervision Agency (LVV) has instructed Google subsidiary Tuike Finland Oy to halt construction on two data centers in Muhos and Kajaani. The order stems from the investigation into environmental concerns, specifically the alleged clearing of over 740 acres of forest for the project. Google has acknowledged the issue, stating that they acted in good faith under the Forestry Act and implemented measures to protect high-value areas.

The company is now advancing its landscaping and biodiversity plans, including tree planting across 130 hectares at Muhos.

The U.S. and China currently dominate the AI data center infrastructure build-up, but Europe is striving to catch up with a $30 billion investment and a target of 100,000 AI GPUs for each site. Finland, often referred to as the "Texas of Europe" for its data centers, offers an abundant supply of land and electricity, making it an attractive location for developers.

However, other European nations are facing challenges with the demand for this power-intensive infrastructure. Denmark has paused new data center connection requests due to overwhelming demand, while Amazon's European projects are experiencing delays of up to seven years.

The stop-work orders in Finland are not related to electricity supply but are instead based on the alleged deforestation without proper government approval. The LVV ordered Tuike Finland Oy to cease activities such as tree removal, topsoil extraction, excavation, and other earth-moving operations, as they could significantly alter the environment.

The LVV's environmental department head, Tommi Muilu, emphasized that the measures in question would have substantial impacts that must be identified and assessed through the Environmental Impact Assessment (EIA) procedure. However, the subsidiary can continue with planning, measurement, and other low-impact activities.

While high-profile resistance to U.S. data centers in Europe is not as prevalent as in the U.S., the stricter permitting and review processes often lead to concerns being addressed before construction begins.