Danske Bank improves Finnish economic forecast due to Google investments

Denmark's Danske Bank has revised its forecast for the Finnish economy for 2027, raising its expected GDP growth from 1.4 percent to 2.1 percent. This happened after Google Corporation (part of Alphabet Inc.) announced its readiness to invest 13 billion euros in the construction of data centers in the country, Bloomberg writes.

This week, the American corporation announced plans to use these funds to build three new data centers and modernize the data center already operating in Finland. In addition, the investment package includes financing for nuclear and wind energy facilities, as well as modern energy storage systems.

These capital injections are recognized as one of the largest for the Finnish industrial sector, the financial institution indicated. Danske Bank estimates that they will contribute around 2 billion euros to Finnish GDP growth in the next two years.

According to Google calculations, during the construction phase the project will increase Finnish GDP by approximately 3.6 billion euros, and after the launch of all capacities it will create conditions to support about 7 thousand jobs.

However, bank analysts are cautious about these figures. They remind you that the bulk of the budget for such projects is spent on the purchase of computer equipment. Since servers are imported from abroad, they will be reflected in macroeconomic indicators as imports, which will smooth out GDP growth, the Danish bank added. But investments in the country’s construction sector will still be very high, they noted.