Google announced to invest 13 billion euros (nearly $15.1 billion) in Finland in the next two years, on Monday, its largest investment in Europe.“This is Google’s largest single investment in Europe and a testament to Finland’s leadership in responsibly building AI infrastructure,” the company said on Wednesday, stating that Google is proud to deepen its roots in Finland.The investment package would include three new data centres in Kajaani, Muhos and Vaala in the northern part of the country; expansion of an existing site in the southeastern city of Hamina; and support for energy projects to power the centres.According to Google, the sites were selected to take advantage of existing grid infrastructure near carbon-free energy sources.Finland has a relatively cold climate and is preferred for setting up data centres. According to Bloomberg, the heat generated by the servers in the data centres can be captured to warm up homes, as the centres will reportedly possess heat recovery readiness.Additionally, nearly 96 per cent of electricity in the country is produced from nuclear or renewable sources.Data centres need fresh water, which Finland has plenty of. The country developed a closed-loop system that reduces water waste.Google has also signed a 22-year contract with Finland’s state-owned ‘Fortum’ to buy up to 50 per cent of the electricity output from the Loviisa nuclear power plant.The company is also expanding the energy infrastructure with wind-power agreements and a 94-megawatt battery system at the Kajaani site to help balance the grid.According to Google’s estimates, the project will support more than 37,000 jobs during the building phase, including around 16,000 in construction. After completion, the facilities will support 7,000 jobs, including suppliers and local services.“Google’s decision is a clear testament to our strengths,” Finland’s Prime Minister Petteri Orpo said in a statement.For Finland, the investment provides a significant boost as the Nordic country seeks to revive economic growth. Finland has been grappling with weak demand, the collapse in trade with neighbouring Russia and the impact of fiscal tightening aimed at bringing public finances under control. Its unemployment rate has risen above 10 per cent, the highest in the European Union.The move also forms part of Alphabet’s efforts to accelerate the expansion of its AI computing capacity. The Silicon Valley giant raised its capital spending forecast in July to as much as $205 billion for this year, as it competes with rivals to establish dominance in the AI landscape.
