Finland puts the brakes on the construction of Google data center... Concerns about large-scale deforestation

AFP news agency reported on the 6th (local time) that Finnish authorities ordered a temporary halt to site construction for two data centers planned to be built by Google amid concerns about environmental damage.

According to reports, the Finnish Licensing Supervisory Authority (LVV) ordered Google's Finnish subsidiary, Tuike, to stop construction of data center sites in Finland, respectively, in the Muhos and Kayani regions until an environmental impact assessment in accordance with relevant laws is completed.

Previously, Google announced last September that it plans to invest at least 13 billion euros (approximately 19.6 trillion won) over the next two years in Finland's digital infrastructure, including artificial intelligence (AI) data centers.

Google evaluated this project as "Google's largest single investment in Europe" and estimated that it would contribute 3.6 billion euros (about 5.4 trillion won) annually to Finland's gross domestic product (GDP) and create more than 37,000 jobs over two years.

Finland, adjacent to the Arctic Circle, has a low average temperature and a developed low-carbon power supply network, so interest is growing as a site for data center construction.

The Finnish Supervisory Office has previously investigated allegations that Google had been conducting preliminary work on site development for a data center, including cutting down 300 hectares of forest, without undergoing an environmental impact assessment, which is required by law, in Muhos and Kayani.

The Supervisory Office requested Google to submit detailed work details and future business plans by the 14th of this month, and notified that if it does not comply, it may initiate compulsory implementation procedures.

Previously, Finnish environmental groups had urged that data center construction be halted while an environmental impact assessment was conducted, saying that nature that should be preserved was damaged.

Google acknowledged responsibility in a statement to AFP, saying, "In this case, we fell short of the high standards we set for ourselves."

Google added that it acted in good faith in accordance with relevant laws in Finland and that it has taken natural surveys and taken measures to protect areas of high environmental value, adding that it is advancing landscaping and biodiversity plans, including a plan to create a 1.3㎢ forest in the Muhos area.

This action by the Finnish authorities increases the possibility that Google's data center project in Finland will be delayed.

Finnish Environment and Climate Minister Sari Multala said in a local media interview, "All companies doing business in Finland must follow the law, but in this case, that was not the case," and mentioned the possibility of a delay in the Google data center project due to this incident.