Google’s 13 billion euro investment sparks hope and doubt

Google’s planned 13 billion euro investment in Finland has been welcomed by local officials in Kajaani, Vaala and Muhos, while some residents remain doubtful about the effects of the new data centres, Yle reports.

Google plans to build data centres in all three municipalities and expand its existing data centre in Hamina, which has operated for 15 years. Local authorities expect the projects to create thousands of jobs and generate significant tax revenue.

“This is an enormous thing for Muhos,” said Tapani Ervasti, chair of the Muhos municipal executive board, describing the announcement as historic.

Construction work is already visible in Muhos. At the Pyhänsivu site, forest clearance began in the spring and earthworks are now under way. Up to 30,000 loads of crushed stone are expected to be delivered by the end of November, around the clock and roughly every five minutes.

Ervasti estimates that the data centre could employ more than 2,000 to 3,000 people during construction and up to 1,000 during operations.

Neighbouring Vaala is also preparing for a significant boost. Municipal manager Minna Kärkkäinen said Google plans to remain in the municipality for a long time and expand gradually, in a similar way to its operations in Hamina over the past 15 years.

Kärkkäinen said the data centre itself could employ about 400 people, with broader effects on property maintenance, accommodation, restaurants and other services. The municipality is zoning 900 hectares for the project.

In Kajaani, the data centre will be built in Otanmäki, an area known for an iron ore mine and a railway carriage factory. Earthworks there are also fully under way.

Sanna Schroderus, planning director of the Kainuu regional council, said she was extremely pleased by the investment decision. Kajaani’s acting city manager, Joni Partanen, also described it as a moment of joy.

Partanen said he understood concerns about future electricity prices but sought to calm the most serious fears. He said Google’s approach was to bring the required energy with it while also investing in renewable energy production. He cited the company’s investment in a battery energy storage facility in Kajaani as an example.

The projects could face delays because appeals have been filed against the detailed local plans in Muhos and Kajaani. The plans were approved in the spring and the appeals are now before the administrative court.

Partanen estimated that construction could begin in Kajaani in 2027 or 2028. Ervasti said he nevertheless believed the data centre would be built in Muhos, noting that Google had not slowed the project despite the appeals.

Google bought large areas of land in Muhos and Kajaani in 2024 and in Vaala earlier this year. The company has also announced an expansion of its existing data centre in Hamina.