Google to fund Finnish artificial intelligence with €13 billion investment and nuclear deal

Google will buy up to half the electricity produced by one of Finland’s nuclear power plants as part of a record €13bn (£11bn; $15bn) investment in the country’s artificial intelligence infrastructure, the company has announced.

The US tech giant said the package would finance three new data centres, expand an existing facility and support energy projects to meet growing demand for artificial intelligence services.

“This is Google’s largest investment in Europe and a testament to Finland’s leadership in responsibly building artificial intelligence infrastructure,” the company said on Wednesday.

“Google’s decision is a clear demonstration of our strength,” Finnish Prime Minister Petteri Orpo said in a statement.

As part of the deal, Google signed a 22-year contract with Finnish utility company Fortum to buy up to 50% of the Loviisa nuclear power plant’s output.

Earlier this week, TikTok announced a $1 billion investment in Finland to build a new data center in Kouvola, citing the country’s “strong digital infrastructure, clean energy structure, robust data management and skilled technical talent.”

Finland has become an attractive location for data centers due to its cool climate, abundant low-carbon electricity and relatively unstressed electricity grid. Cooler temperatures can reduce the energy needed to cool rooms full of computer servers.

Technology companies are racing to secure power supplies as the boom in artificial intelligence drives demand for vast networks of data centers.

According to Google, Google’s investment is expected to support more than 37,000 jobs during construction and increase Finland’s GDP by 3.6 billion euros per year. Construction is scheduled for 2027 and 2028.

“The value of the data economy goes far beyond direct investment in driving innovation, research and development,” Orpo added.

“Deepening our collaboration with Google will bring long-term benefits to both parties.”

Google will build new data centers in Kajaani, Muhos and Vaal, as well as expand the existing facility in Hamina, which the company opened after converting a former paper mill in 2009.

The infrastructure will help support products such as the artificial intelligence chatbot Gemini, as well as services such as search, maps and YouTube.

Google said the investment also includes “clean energy projects, as well as dedicated nature and community funds to support local biodiversity, education, research and workforce development.”

“Google is proud to deepen its roots in Finland,” said Ruth Porat, president and chief investment officer of Alphabet and Google.

“This investment underscores Google’s commitment to responsibly expanding our footprint by combining expansion of our technical infrastructure with new energy capacity, network improvements and energy affordability initiatives,” she added.

Earlier this year, Google parent Alphabet increased its global spending plans to $205 billion as it seeks to expand computing capacity for artificial intelligence services.

The agreement with Fortum provides long-term financial certainty for the Loviisa power plant, which currently produces about 10% of Finland’s electricity.

Fortum said Google’s commitment will support an investment program aimed at extending the life of the nuclear plant and increasing its generating capacity.