Google has been operating in Finland for over 15 years, but its most recent data center expansion has brought an unwelcome "neighbor" to the nearby villages. After Google was ordered by Finnish authorities to stop work for clearing forests for a data center expansion project worth several billion euros, wolf packs appeared in villages near Muhos and Otanmiki in Finland.
“Because all the wild animals have been moved out of the forest, we saw wolves enter the village,” said Annie Lanta ( Anni Ranta ), a resident of Otamiki, to The Guardian. “They escaped.”
According to The Guardian, Google's Finnish subsidiary Tuike Finland Oy has cleared approximately 330 hectares (815 acres) of forest near Muhos and nearly 200 hectares (about 494 acres) of forest near Otanmiki before completing the necessary environmental assessments. A total of around 400,000 trees were removed from these areas.
Finnish authorities have ordered this technology giant to suspend all preliminary work at two sites until the completion of environmental assessments. The Finnish Licensing and Supervision Authority has required Google to stop the preparatory activities for the Muhos project and the Otanmiki project near Kajaani. The authority stated that these activities include logging, topsoil removal, construction of access roads, and other changes that could significantly alter the environment before the necessary assessments are completed.
"In our view, the relevant measures will change the environment and have an impact, and the identification and assessment of these impacts is one of the key objectives of the environmental impact assessment process," said Tommi Muilu ( Tommi Muilu ), head of the environmental department at the Finnish Licensing and Supervision Authority, in a press release.
Google stated that the company acted "out of good faith" and had no intention of causing environmental damage beyond Finnish law. The company also announced plans to replant 130 hectares of trees in Muhos. The area covered by this replanting plan is less than half of the area that was cleared at the Muhos site alone.
A Google spokesperson told CNBC: "We understand the concerns of the outside world; this time we did not meet our usual high standards. We acted in good faith within the framework of the Forest Law, conducted natural surveys, and took measures to protect high-value areas. As we continue our long-term work in this region, we are advancing landscape and biodiversity initiatives, which include planting 130 hectares of trees in Muchoos."
These cleaning efforts are part of Google's investment plan announced in September, which involves a commitment of 13 billion euros (about 15.1 billion US dollars) in Finland. As the demand for cloud computing, digital services, and artificial intelligence workloads grows, the company plans to expand its data center infrastructure across Finland.
A Google press release states: "Google is supporting clean energy projects, as well as funds dedicated to nature and communities, in order to support local biodiversity, education, research, and labor force development."
Fortune indicates that Google did not immediately respond to its request for comment.
Why Finland Attracts Google
Finland has become a popular destination for data center developers because of its cool climate, access to low-carbon electricity, and abundant land. The lower temperatures can reduce the energy consumption required for server cooling, and the country's power mix includes nuclear, wind, and hydroelectric power.
Google has been operating data centers in Finland for many years. Its existing Hamina facility has been in operation since 2011, and its cooling system uses seawater from the Gulf of Finland – a design that this tech giant has always emphasized as being different from traditional cooling methods. This facility also relies on Finland's power infrastructure.
Finland also actively sought to secure Google's $15.1 billion project. When Google announced the project in September, Finnish Prime Minister Petri Orpo ( Petteri Orpo ) stated: "Finland is attractive for investment, and continuing to attract more investment remains our top priority. Google's decision clearly demonstrates our advantages."
This Nordic country welcomes this technology giant with an open attitude. Google has collaborated with Finland's national power grid operator Fingrid, as well as Finnish official government organizations and publicly funded institutions Business Finland to find a location for the company's infrastructure. In September, Google also signed a 22-year agreement with Fortum to help extend the life of the Loviisa nuclear power plant; Google states that this nuclear power plant supplies about 10% of Finland's electricity.
In a press release, Google stated: "Without this life-extension investment plan, this power plant, which currently employs about 580 people and provides 10% of Finland's electricity, will not be able to continue operating after 2030. Keeping this clean energy asset in operation for the coming decades will help to stabilize electricity prices and support the long-term resilience of Finland's power grid."
However, according to the European Commission, data centers are becoming an increasingly serious environmental and climate challenge due to their high consumption of electricity and water resources. Their carbon footprint also depends on whether the energy used to power them is low-carbon or fossil fuel-based.
The European Commission writes: "Sustainable, flexible, and well-designed data centers that can adjust their power consumption according to the grid conditions can help reduce the overall costs of the power system, improve grid stability, and integrate more renewable energy."
