Google Is Betting $15B on Finland to Power Search, Maps and Gemini AI, Here's Why

Google will spend at least €13B ($15.1B, £11.3B) building artificial intelligence infrastructure in Finland, the largest single investment the company has ever made in Europe.

The Alphabet-owned firm confirmed the plan on Wednesday. The money runs across 2027 and 2028 and covers three new data centres in the towns of Kajaani, Muhos, and Vaala, plus an expansion of Google's long-running site in Hamina on the country's southern coast.

The company said the new capacity would help meet demand for Search, Maps, and its Gemini AI models, all of which rely on the computing power that large data centres supply. Beyond the server halls, Google said the money would also fund electricity grid upgrades and clean energy projects.

Why Finland Keeps Winning the Data Centre Race

Finland has become one of the most sought-after homes for large data centres in Europe. Its cold climate lowers the cost of cooling servers, and its grid runs on nuclear, wind, and hydro power, which gives operators cheaper, low-carbon electricity. Land and spare grid capacity, both tight across much of the continent, remain available.

Ireland and the Netherlands hosted earlier data centre booms. Finland and its Nordic neighbours are now competing for the next one.

Google is not the only major tech firm building there. Microsoft is developing a data centre region in southern Finland, near Helsinki, that channels waste heat from its servers into district heating for local homes. TikTok owner ByteDance has also scouted the country to cut energy costs.

Google's history in Finland is long. Fifteen years ago it converted a former paper mill in Hamina into a data centre cooled by seawater from the Gulf of Finland. Between 2023 and 2025, that site supported more than 600 Finnish suppliers across construction, operations, and fibre networks, the company said.

The Hamina data centre also channels recovered server heat to nearby homes and businesses.

A Nuclear Deal and 37,000 Jobs

The investment comes with commitments aimed at the local economy. Google said the construction phase would support more than 37,000 jobs nationwide and add about €3.6B ($4.2B, £3.1B) a year to Finnish GDP across 2027 and 2028. Company estimates put about 16,000 of those as direct building roles. Once the sites are running, the company expects them to sustain thousands of permanent roles, with the annual figure reported at around 7,000.

The package also includes local community funding. Google is putting €31M ($36M, £27M) into Hamina, Kajaani, Muhos, and Vaala over four years, funding AI training for more than 4,400 workers and data centre courses for 100 students.

The plan sets out energy commitments as well. Google has signed a 22-year agreement to support the life extension of the Loviisa nuclear power plant, is adding onshore wind capacity, and has contracted a 94-megawatt battery system to help stabilise prices during cold, windless periods.

Nordic communities have grown more cautious about the water and land that large data centres consume. Google said part of the money would regenerate native forests and wetlands near its sites.

Part of a Much Bigger AI Bill

The Finnish investment is a fraction of Alphabet's wider spending. The company has raised its worldwide capital budget this year to between $195B and $205B (£146B to £153B), most of it going on the data centres, chips, and networking gear that AI relies on.

Rivals including Microsoft, Amazon, and Meta are committing comparable sums to their own build-outs. Alphabet has said the spending is intended to expand its computing capacity as demand for cloud and AI services grows.

Finland's government welcomed the decision. Prime Minister Petteri Orpo called it 'a clear testament to our strengths.' He said the value of the data economy would extend well beyond the direct investment, into research and innovation across the country.

Bikash Koley, Google's vice president of global infrastructure, announced the investment in a company blog post. 'We're excited to build the next chapter of digital innovation, right here in Finland.'