Data center expansion in the world is changing fast: while the U.S. boasts “data center alley” in Virginia and tax incentives for data center investment, Finland has rapidly come onto the scene as one of the largest data center magnets in Europe. The country is one of Europe’s quickest growing AI markets, and major AI and big tech corporations such as Microsoft and TikTok have already pledged billions in investments into Finland, enticed by its growing role in Europe’s AI economy. But the latest and largest commitment came Wednesday, when Google announced its largest investment in Europe yet: an investment of at least €13 billion ($15.1 billion) in AI infrastructure in Finland over the next two years.
“This is Google’s largest single investment in Europe and a testament to Finland’s leadership in responsibly building AI infrastructure,” Google said in a statement. This demonstrates “what is possible through strong partnerships to create long-term community value and world-class environmental sustainability.”
The investment will support data centers and energy infrastructure at four locations in the country. Google said it will also invest in grid upgrades, renewable energy and other projects intended to support the power demands of its AI infrastructure.
“Finland is an attractive destination for investments, and attracting further investment remains a top priority,” said Finnish Prime Minister Petteri Orpo. “Google’s decision is a clear testament to our strengths. The value of the data economy extends far beyond direct investment into spurring innovation, research, and development. Deepening our collaboration with Google will deliver lasting benefits for both parties.”
In like company
It’s not just Google: TikTok and Microsoft are also heavily investing into the country. TikTok announced a $1.1 billion investment in April, while Microsoft acquired nearly 200 hectares of land for data center construction.
In June, Microsoft announced it signed a preliminary agreement to acquire roughly 190 hectares of land on Finland’s western coast for potential data center development. It said the acquisition supports its long-term plans in Finland, but the company is still in the application process for data center construction.
“Finland is an important country for us, and we are committed to investing here for the long term,” Teemu Vidgrén, General Manager of Microsoft Finland said in the release. “This land acquisition builds on long-term collaboration with local municipalities and authorities. From here, our focus is on working with partners to explore what could be developed on the site, and we will share more as our plans take shape in dialogue with local communities.”
The company is developing its first data center region in southern Finland with Azure cloud infrastructure, designed to provide Finnish customers with locally hosted computing and data-storage capacity. According to a press statement from Fortum in 2022, Microsoft began that project in partnership—including a plan to recover waste heat from the data centers and feed it into the local district heating system.
TikTok has also staked its claim in the Northern European country. The social media giant’s second Finnish facility in Kouvola was also announced in April with a €1 billion ($1.16 billion) investment.
The project is part of the company’s broader European data-sovereignty initiative—meant to keep European users’ data in Europe and strengthen controls over access to it.
Dubbed “Project Clover,” the short-form video content company is investing €12 billion ($14 billion) “over 10 years for across Europe for data security, including “strict access controls enforced by security gateways ensure that employees in China have no access to restricted data, such as phone numbers or IP addresses, stored in our European enclave.”
Other investment in the country
The data center project isn’t the only investment Google is making into the country: it also signed an agreement with Finnish utility company Fortum to extend the life of a nuclear power plant in Loviisa in the company’s latest attempt to use nuclear power as a clean energy source to power the data center investment. According to the release, the plant “would not have been able to continue operations beyond 2030” without the deal. Google estimates 10% of Finland’s electricity supply will remain online and avoid price increases for grid users due to this agreement.
According to a press release from Fortum, the deal includes a 22-year purchase agreement for up to 50% of the energy from one of Finland’s nuclear plants.
The tech giant also already operates a major data center in Hamina, where it converted a former paper mill into a facility that uses seawater from the Gulf of Finland for cooling. The company separately announced a €1 billion expansion of the Hamina campus in 2024.