Google announced it will invest at least $15.2 billion in Finland over the next two years to build artificial intelligence infrastructure, marking the company's largest single investment in Europe to date, with funding set to be deployed in 2027 and 2028.

The investment will cover four locations: Hamina, Kajaani, Muhos, and Vala, with three new data centers being built and the existing Hamina facility being expanded. The Hamina site was converted from a paper mill acquired in 2009 and has undergone multiple expansions, while the new sites will be located in the north near low-carbon power sources and existing power grids.

Google has signed a 22-year power purchase agreement with Finnish energy company Fortum, securing up to 50% of the output from the Loviisa nuclear power plant, which currently accounts for about 10% of Finland's electricity supply. The agreement supports the plant's extension until 2050, alongside new onshore wind power and a 94 MW energy storage system near Kajaani, expected to be operational by the end of 2027.

The construction phase is expected to contribute approximately €3.6 billion to Finland's GDP annually and support over 37,000 jobs nationwide, with about 16,000 being construction jobs; after operations begin, around 7,000 permanent positions will be created. Google also plans to invest €31 million over four years in local training, education, and community projects.

The new computing power will support products such as Search, Maps, YouTube, and Gemini. Nokia will participate in building supporting optical and IP networks. Following the announcement, Fortum's stock rose over 11%, Nokia's by about 6%, and the Finnish stock market strengthened overall.

In market mechanics, the buyer is Google, expanding in an event-driven manner to secure low electricity prices, low carbon, and natural cooling conditions; the sellers include Fortum's nuclear output, wind power developers, and local construction and network suppliers. Funds will flow from Google's global capital expenditures into Finland's electricity, land, grid, and data center chain, benefiting Fortum, Nokia, and local contractors, while the risks of grid capacity and electricity price pressures will fall on residents and other industrial users.

Alphabet has raised its global capital expenditure target for the year to $195 billion to $205 billion, with the Finland project being one part of its European investments. TikTok has also announced an investment of about $1 billion in a data center in Kouvola, making Northern Europe a battleground for large-scale computing power.

Source: Public Information