Google to invest $15 billion in AI infrastructure and buy nuclear power in Finland
- Google says deal is its single biggest investment in Europe
- Finland's appeal includes cool climate and abundant low-carbon energy
- Nuclear power deal provides economic certainty for the plant's lifetime, Fortum says
- Google says investment will add €3.6 billion to Finland's GDP
A view of Fortum's nuclear power plant in Loviisa, Finland, September 2, 2024. REUTERS.
Alphabet's (GOOGL.O), opens new tab Google will invest at least €13 billion ($15.1 billion) in AI infrastructure in nippy Nordic country Finland over the next two years, its biggest European investment, including a major deal for the supply of nuclear power.
The U.S. firm said on Wednesday the AI infrastructure build-out would involve the development of three new data centres in the country's north, where the temperature can drop well below minus 10 degrees Celsius (14 degrees Fahrenheit) in winter.
The deal marks a major push for Google in Europe, where colder climes and stable grids in the Nordics offer an attractive location for energy- and water-intensive data centres that use huge amounts of energy to keep their computer servers cool. Freezing air can offer an efficient alternative.
Alphabet this year increased its global investment to between $195 billion and $205 billion as it seeks to capture growing AI computing demand.
The Finland deal also includes a 22-year purchase agreement for up to 50% of the energy output of one of the country's two nuclear plants, its operator Fortum (FORTUM.HE), opens new tab said separately, which would help with electricity supply.
"We call this BYOP, bring your own power," Google's President and Chief Investment Officer Ruth Porat told reporters in Helsinki. "This is Google's first nuclear energy deal outside of the United States."
Nuclear power, as a source of large amounts of low-carbon energy, is one of the attractions Finland offers as companies including Microsoft (MSFT.O), opens new tab and TikTok owner ByteDance as well as Google seek sites for data centres while containing energy costs and meeting climate goals.
Fortum and Google will also explore the development of new nuclear and renewable energy in Finland, the companies said. Fortum's shares jumped 15.5% to 4-1/2-year highs on the news, the biggest gainer in Europe.
'THERE IS ENOUGH ELECTRICITY'
The investments will include data centres, electricity grid improvements and clean energy and battery projects driving services such as Gemini, Search, Maps and YouTube, Google said in a statement.
The investment, planned for 2027 and 2028, will contribute some €3.6 billion to Finland's gross domestic product during the construction phase, and is projected to support some 7,000 jobs annually once operational, Google said.
Finland's Prime Minister Petteri Orpo said that the deal would be a boost for the economy by spurring innovation, research and development, playing down concerns it would suck up energy and push up prices.
"Based on all the information available, there is enough electricity," he said. "They are committed to ensuring that electricity production in Finland remains sufficient and that prices remain under control."
Finland, a similar size to Germany but with under 6 million people, has had less vocal opposition to data centre build-out than other places, including in the United States.
In its statement, utility Fortum said the long-term purchase deal provided economic certainty for a lifetime extension and upgrade of the Loviisa power plant through 2050. The plant is situated near Google's Hamina data centre.
