Core Points

• Before completing the environmental impact assessment, Google was ordered to suspend construction of two data centers it was building in Finland.
• A Google spokesperson said, "We understand the concerns of all parties, and this time we failed to meet our own high standards."
• Amid the AI craze, Finland has become a key location for data centers around the world.

Google has received a directive to suspend construction on two data center projects it was developing in Finland; just a month ago, the tech giant had promised to make significant investments in the country.

The Finnish Licensing and Regulation Authority ( LVV ) issued a notice on Tuesday to Google's subsidiary Tuike Finland Oy, requiring the suspension of construction work on the data center projects in Muhos and Kajaani until the completion of the environmental impact assessment ( EIA ).

According to a announcement issued by the Finnish Licensing and Regulation Authority, this work stoppage order covers a range of activities: tree felling, topsoil removal, excavation work, quarrying, material crushing, earth transport, trench digging, as well as the construction of roads and storage areas.

A Google spokesperson stated, "We understand the concerns of all parties, and this time we failed to meet our own high standards. We will comply with the guidance requirements of the Finnish Licensing and Regulatory Authority."

The spokesperson added, "We carry out our projects in accordance with the principles of integrity and the Forest Law, complete natural environment surveys, and introduce measures to protect high-value ecological areas. As we continue our long-term projects in this region, we are also advancing landscape and biodiversity conservation plans, which include planting 130 hectares of trees in the Muhoos project site."

The Finnish Licensing and Regulation Authority requires Google to implement the suspension of work by October 23 at the latest. This suspension order does not apply to planning surveys, measurements, soil research, and other operations that have minor impacts and are easy to restore to their original state.

Tomi Muilu, head of the environmental department at the Finnish Licensing and Regulation Agency, stated in a declaration: "We believe that the aforementioned construction activities will change the environment and have various impacts, and identifying and assessing these impacts is the core objective of the environmental impact assessment process."

"Texas of Europe"

Amid the construction boom, Finland has become a popular destination for data center investments. Most regions in Europe face shortages of land and electricity resources, yet major hyperscale cloud providers and development companies are optimistic about Finland's abundant supply of both land and electricity.

Finland has recently announced several data center projects, with each project having the potential to install hundreds of megawatts of capacity.

The strong demand for computing power has earned Finland the nickname "Texas of Europe." Texas in the United States is the core hub for global AI data centers, with companies such as Google, Meta, Microsoft, and Anthropic implementing large-scale projects there.

Google plans to invest $15 billion in Finland, which is Google's largest investment in Europe to date. Google stated that this funds will be allocated by 2028 for the construction of data centers and related investments in energy infrastructure.