Google ordered to halt work on two data centers in ‘Texas of Europe’

Google has been ordered to halt work on two data centers it's developing in Finland, a month after the tech giant committed to investing $15 billion in AI infrastructure in the country.

Finnish Licensing and Supervision Agency (LVV) on Tuesday issued a notice to Google subsidiary, Tuike Finland Oy, to suspend building work for data center projects planned for Muhos and Kajaani until the environmental impact assessments have been completed.

The suspension request applies, among other things, to the removal of trees, removal of topsoil, excavation, quarrying, crushing, transfer of soil masses, ditching and the construction of roads and storage areas, according to a Google translation of an LVV press release.

"We understand the concerns and have fallen short of our own high standards in this instance," a Google spokesperson told CNBC, adding that they would follow the LVV's guidance.

"We acted in good faith under the Forestry Act, and ran nature surveys and put in place measures to protect high-value areas," the spokesperson said. "As we continue our long-term work in the region, we are advancing our landscaping and biodiversity plans, which include tree planting across 130 hectares at Muhos."

The LVV ordered Google to halt work no later than Oct. 23. The request does not apply to planning, measurements, soil surveys, or other measures with minor impacts that can be easily restored.

"In our opinion, the measures in question will change the environment and cause impacts, the identification and assessment of which are among the key objectives of the EIA procedure," Tommi Muilu, head of the environmental department at the Finnish licensing and supervision authority, said in the statement.

Finland has emerged as a key location for data centers amid the AI boom, with hyperscalers and developers eyeing its available land and power, which is in short supply throughout most of Europe.

Several data center projects with potential capacities of hundreds of megawatts have recently been announced in the country.

The rise in demand has led to Finland being dubbed the "Texas of Europe." The U.S. state has become one of the leading locations for AI data centers globally, with a number of huge projects announced by hyperscalers and AI labs, including Google, Meta, Microsoft and Anthropic.

Google's $15 billion plan for Finland will mark its largest investment in Europe. The capital will be deployed through 2028 into data centers and other supporting investments like energy projects, the company said in a statement at the time.