Google Expands Data Centre Footprint with Finnish Land Deal

The Nordic region continues to attract data centre investment due to its cold climate, renewable energy sources and political stability. Finland, which hosts facilities for data centre providers such as Microsoft, Equinix and Telia, has positioned itself as a key location for hyperscale operators seeking to expand their European infrastructure.

Google’s commitment to Finland dates back to 2009, when it purchased the Summa Mill from paper company Stora Enso and converted it into a data centre. The company says it has since invested €2 billion (US$2.1bn) in its Hamina facility and network infrastructure, which uses seawater cooling from the Bay of Finland to reduce energy consumption and supports its target to operate entirely on carbon-free energy by 2030.

Now, Google has purchased four parcels of land in Finland from state-owned enterprise Metsähallitus for €27 million (US$28.5m), in an acquisition covering 1,400 hectares across the municipalities of Muhos and Kajaani.

The land, which has been previously used for commercial forestry, will support future expansions of Google’s cloud computing and data centre infrastructure in Finland, where the company has operated facilities since 2011.

The transaction marks a rare large-scale land sale by Metsähallitus, the state enterprise responsible for managing Finland’s state-owned land and water resources.

Employment impact drives regional development strategy

Google’s current data centre campus in Hamina, which processes and stores data for cloud computing services, provides employment for 400 full-time staff. The construction phase of previous developments created several thousand direct and indirect jobs.

The impact of the potential expansion on employment is expected to extend beyond direct data centre operations. The development could stimulate growth in local services and the housing market, according to government projections.

Prime Minister Petteri Orpo says: “I’m pleased about the announcement of Google. This deal forms a foundation for any potential future investments and sends a clear message that Finland is an attractive and safe country for investments.”

The sale aligns with government programmes for northern and eastern Finland, focusing on economic growth, regional development and labour availability.

Planning and environmental processes guide development pathway

Antti Järvinen, Country Director of Google Finland, says: “Even before a final investment decision is made for the development of the sites in Kajaani and Muhos, we are working in close consultation with local and national stakeholders on a plan that supports the long-term health of the community's economy and natural resources. This is the first step in a long process.”

According to a press release from the Finnish government, the development requires statutory land use planning approval. Google will determine how to use the sites based on planning and permit requirements, and Metsähallitus will not participate in project development or operations.

The Finnish government provided clearance for the sale after receiving statements from the Ministry of the Environment, Finnish Heritage Agency, Ministry of Defence and Ministry of the Interior, confirming no impediments to the transfer.

The land will be sold as raw land, requiring Google to navigate planning processes before development can commence.

Antti says: “For more than a decade, Finland has been home for our Google data center in Hamina, and we're dedicated to supporting the country's growing digital ambitions.”

The sale represents a strategic move in Finland's push towards green economic growth. Juha S. Niemelä, Director General of Metsähallitus, says: “Metsähallitus promotes green growth by providing sites for green transition projects. This requires balancing economic, environmental, and social sustainability perspectives, as well as extensive cooperation with various stakeholders. The land sale for Google's potential data centre investment is an excellent example of how state-owned areas can be used as engines for green growth, while creating jobs and positive regional impacts.”

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