Muhos town faces delay in €26 million Google compensation after zoning plan appeal

A legal challenge has been filed against the zoning plan for Google’s planned data centre in Muhos, Finland, delaying the town’s expected €26 million compensation payment, reports Yle.

A private individual has appealed the so-called “Google plan,” arguing that environmental impacts were not sufficiently assessed. The appellant also claims the town’s land-use agreement with Google—worth €26 million—may have improperly influenced the zoning process.

Under the agreement, Google will pay Muhos €26 million once the plan becomes legally binding and the town begins constructing municipal and road infrastructure for the area. The appeal now postpones both the work and the payment.

Muhos town manager Kimmo Hinno declined to comment on the appeal. The municipal council approved the Pyhänsivu-Leppiniemi zoning plan in early March, but Google has not yet made a final investment decision on the data centre.

The 1,000-hectare area covered by the plan includes a significant portion reserved for Google’s potential project.