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Finnish regulators have stepped in to suspend preparatory construction at two Google data centre sites after the clearance of more than 300 hectares of forest raised alarm among environmental authorities. The intervention casts a shadow over what the tech giant has billed as its largest single investment in Europe, a €13bn (£11bn; $15bn) package announced less than a month ago.
The Finnish Supervisory Agency (LVV) said work at one of the sites had proceeded without a mandatory environmental impact assessment, prompting it to order that measures capable of "significantly altering the environment" be stopped by 23 October. The orders apply to preparatory activity at planned data centre locations in Muhos and Kajaani, both in northern Finland.
According to Tommi Muilu, the LVV's head of environment, the work already carried out included felling trees, stripping topsoil, building site roads and storage areas, and modifying ditches. These are exactly the kinds of operations that regulators say should not go ahead before environmental requirements have been properly examined.
Tuike Finland, the company responsible for delivering the Google data centre projects, has been instructed to submit an explanation and outline how it intends to proceed. The deadline for that response is 14 October. The agency warned it could launch "enforcement proceedings" if the company does not comply with its demands.
Google responded with an unusual admission, telling the BBC it had "fallen short of our own high standards in this instance" and confirming it would follow the agency's guidance. The company said it had acted in good faith under Finland's Forestry Act, conducted nature surveys, and put measures in place to protect areas of high environmental value.
The company also pointed to its longer-term environmental commitments in the region, saying it is advancing landscaping and biodiversity plans that include planting trees across 130 hectares at Muhos. Google framed these efforts as part of its continuing work in Finland rather than a direct response to the suspension.
Environmental campaigners had already raised concerns before the regulator acted. Hanna Halmeenpaa, chair of the Finnish Association for Nature Conservation, told AFP that "nature sites which should be preserved" had been felled. The group had called for work to stop while environmental requirements were scrutinised, a demand the LVV has now effectively granted, at least temporarily.
The timing is awkward for Google. Last month, the company announced it would invest at least €13bn in Finland across 2027 and 2028, with new data centres planned for Kajaani, Muhos and Vaala, plus further investment in its existing facility at Hamina. It described the package as its largest single investment in Europe to date.
Google has linked the expansion to surging demand for services including Search, Maps and its AI assistant Gemini. The company said the construction phase in 2027 and 2028 would support more than 37,000 jobs and contribute an average of €3.6bn annually to the Finnish economy, figures that underline why the projects have attracted political as well as commercial interest.
As part of the expansion, Google also signed a 22-year power purchasing agreement with Finnish energy company Fortum, covering up to half the capacity of the Loviisa nuclear power plant. Fortum has said the deal would help support the plant's continued operation until 2050, tying the data centre build-out to Finland's longer-term energy planning.
Finland has become an increasingly popular destination for data centre developers, drawn by its cool climate and low-carbon electricity supply. Lower ambient temperatures reduce the energy needed to cool rooms filled with computer servers, while the country's clean power mix helps companies meet emissions targets. Those advantages explain why Google chose Finland for such a substantial commitment.
The suspension nonetheless highlights the tension between rapid digital infrastructure growth and local environmental protection. Data centres require large tracts of land, significant water and electricity, and extensive site preparation, all of which can conflict with forest conservation and planning rules. The LVV's intervention suggests Finnish authorities are prepared to enforce those rules even against a project of national economic significance.
For now, the immediate question is how quickly Tuike Finland can satisfy the regulator. If the company provides an acceptable explanation and a revised plan by mid-October, work could resume. If not, enforcement proceedings may follow, potentially delaying a project central to Google's European cloud and AI ambitions.
The case also adds to broader scrutiny of how technology companies manage the environmental footprint of their AI-driven expansion. Google's own acknowledgement that it fell short of its standards may soften criticism, but it does not resolve the underlying dispute over the felled forest or the missed assessment that regulators say should have preceded the work.
Neither the LVV nor Google has indicated how long the suspension might last, and it remains unclear whether the halt will affect the overall timeline for the 2027 and 2028 construction phase. What is clear is that Finland's environmental oversight has inserted an unexpected obstacle into a landmark investment, and the coming weeks will determine whether it proves a brief pause or a more serious setback.
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