Google to invest US15 billion in AI Infrastructure in Finland

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInformation TechnologyNewsGoogle to invest US15 billion in AI Infrastructure in FinlandThe Finnish investment is part of Alphabet’s efforts to accelerate an expansion of AI computing capacityAuthor of the article:Google’s move is part of a large-scale build-out of computing capacity in the Nordic country, coming on top of an estimated 43 billion euros worth of projects being planned or executed. Photo by TOBIAS SCHWARZ/AFP via Getty ImagesAlphabet Inc.’s Google is planning its biggest investment in Europe, an artificial intelligence infrastructure build out worth at least 13 billion euros (US$15.1 billion) in Finland.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe investments over the next two years will include the construction of at least three new data centres as well as the expansion of its existing data centre in the southeastern city of Hamina, the company said in a statement on Wednesday.Google’s move is part of a large-scale build-out of computing capacity in the Nordic country, coming on top of an estimated 43 billion euros worth of projects being planned or executed.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThose projects are taking advantage of Finland’s relatively cold climate, which requires little cooling and where heat generated by the servers can be captured to warm up homes. In addition, 96 per cent of electricity in the Nordic country is based on carbon-free production, mostly a mix of nuclear and renewable power. There’s also plenty of available fresh water, and most data centres in Finland are built with a closed loop system reducing water waste.“Google is proud to deepen our roots in Finland with the company’s largest single investment in Europe,” chief investment officer Ruth Porat said in a statement.The announcement buoyed local companies that will benefit from the project. Shares in utility Fortum Oyj, which will sell Google half the output of its Loviisa nuclear power plant, rose more than 11 per cent, the most in almost four years.Network infrastructure provider Nokia Oyj rose as much as six per cent and telecommunications operator Elisa Oyj was up two per cent. The companies will enable connectivity for the new data centres.The Finnish investment is part of Alphabet’s efforts to accelerate an expansion of AI computing capacity. The Silicon Valley giant in July raised its capital spending forecast to as much as US$205 billion this year in a race with rivals to dominate the AI landscape.The projects in Finland haven’t inspired as intense a public backlash as some of the proposed sites in the United States or other parts of Europe, where concerns over land and resource use and power costs have delayed or derailed projects. In the U.S., data centres’ contribution to higher electricity bills is becoming a key issue in upcoming midterm elections.For Finland, the investment is a major boost as it struggles to revive economic growth. The Nordic country has struggled with weak demand, the collapse of trade with neighbouring Russia and the effects of fiscal tightening aimed at bringing public finances under control. The unemployment rate has topped 10 per cent, the highest level in the European Union.Google estimates that the projects will employ 16,000 construction workers. The new data centres will be built in Kajaani, Muhos and Vaala in northern part of the country where the company had previously acquired land. The sites were selected to take advantage of existing grid infrastructure, Google said.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.“These locations at strong grid points both help the whole electricity system and ensure cost-effective network development,” Asta Sihvonen-Punkka, chief executive of transmission system operator Fingrid Oyj, said in the statement.Google said it is also expanding the energy infrastructure supporting the projects with new wind-power agreements and a 94-megawatt battery system at the Kajaani site to help balance the grid. The data centres come with heat recovery readiness.Fortum also announced a 22-year power-purchase agreement with Google, covering the lifetime extension period of the Loviisa plant. From 2030 to 2049, the deal will reach 50 per cent of the two-reactor plant’s capacity, Fortum said.Other companies building, operating or planning data centres in Finland include Microsoft Corp., Nscale, AtNorth Holding AB, Pure Data Centres Group, Nebius Group NV, DayOne Data Centers and Polarnode. There are so many projects that the government is planning a law that would require operators to register data centres to ensure officials can keep track of them all.With assistance from Thomas Hall.We apologize, but this video has failed to load.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.