Finland has ordered a halt to preparatory work on two Google data centre sites in the country, demanding that the US tech giant complete mandatory environmental impact assessments before proceeding. The decision, announced on Tuesday by the Finnish Supervisory Agency (LVV), affects planned facilities in the municipalities of Muhos and Kajaani, both in the northern region of Oulu.
The LVV said it had instructed Tuike Finland, the company representing Google, to "immediately suspend, and no later than 23 October 2026, all preparatory measures that would significantly alter the environment" at the two sites. The agency has been investigating whether Tuike Finland cleared hundreds of hectares of forest without the legally required environmental assessment.
Google announced in September a €13 billion investment in Finnish digital infrastructure over the next two years, describing it as its largest single investment in Europe. The projects are central to the company's artificial intelligence ambitions, which rely on vast computing power and energy-hungry data centres.
Allegations of unauthorised deforestation
The Finnish Association for Nature Conservation has been vocal in its criticism. Its chair, Hanna Halmeenpää, told AFP last week that "nature sites which should be preserved" had been logged in an area exceeding 300 hectares (741 acres). The LVV's head of environment department, Tommi Muilu, confirmed that trees had been removed, topsoil stripped, site roads and storage areas constructed, and ditches altered.
Tuike Finland has been given until 14 October to provide an explanation and outline how it intends to comply. If it fails to do so, the LVV warned it could initiate "enforcement proceedings."
Google spokesman Sondre Ronander acknowledged the company's shortcomings. "We understand the concerns and have fallen short of our own high standards in this instance," he said in a statement to AFP. "We will study the LVV's findings and follow their guidance." He added that the company had "acted in good faith" and had implemented environmental surveys and measures.
Ronander also noted that Google is advancing its landscaping and biodiversity plans, which include tree planting across 130 hectares at Muhos. However, Finland's Minister of the Environment and Climate, Sari Multala, said the projects would likely face delays due to the problems with the environmental assessments.
The episode highlights the growing tension between the rapid expansion of digital infrastructure and environmental protections in Europe. Data centres, particularly those supporting AI, require enormous amounts of land, water, and electricity, often placing them in conflict with local ecosystems and communities.
In Muhos, the project has already divided local opinion, as reported earlier. Some residents welcome the economic boost, while others worry about the loss of natural habitats and the strain on resources.
Finland, with its cold climate and abundant renewable energy, has become an attractive location for data centre operators. But the country's strict environmental laws are now being tested as large-scale projects move forward. The LVV's decision sends a clear signal that compliance with environmental regulations is not optional, even for major international investors.
This is not the first time Google has faced regulatory pushback in Europe. The company is also challenging an EU data-sharing order over privacy concerns. And as AI expands, questions about the environmental footprint of data centres are likely to intensify across the continent.
The Finnish government, meanwhile, is navigating a delicate balance between attracting foreign investment and upholding its environmental commitments. The outcome of this case could set a precedent for how other Nordic countries handle similar proposals.
