Google announces €13 billion infrastructure build-out in burgeoning European data center hub

Google is set to expand its footprint in Finland as part of a €13 billion infrastructure investment in data centers focused on the towns of Hamina, Kajaani, Muhos and Vaala.

During the initial construction phase, which will run through 2027 and 2028, the expansion is expected to contribute €3.6 billion to Finland's GDP and support 37,000 jobs nationwide.

Once operational, Google said the facilities are projected to support 7,000 jobs annually, spanning on-site facility and technical roles, as well as roles in downstream businesses.

“This is Google’s largest single investment in Europe and a testament to Finland’s leadership in responsibly building AI infrastructure – demonstrating what is possible through strong partnerships to create long-term community value and world-class environmental sustainability,” the company said.

Running parallel to this, Google will also invest in energy infrastructure designed to support data center build-outs. T

his includes sa life extension power purchase agreement for the Loviisa nuclear power plant with Nordic energy provider Fortum, as well as upgrades to grid capacity and renewable energy.

Google said it will support two onshore wind projects, with development led by Valorem and Suomen Hyötytuuli. This will bring the total amount of onshore wind energy contracted by the firm to 629 MW.

Google builds on long-standing ties

Google already has a strong presence in Finland, having opened its Hamina data center 17 years ago. The location has since been transformed into a “digital data hub”, according to Google, and forms part of the company’s global network of 43 cloud regions.

Several organizations, including Nokia, Elisa, and the City of Hamina rely on the data center to support operations.

Google said the Hamina site and Finland more broadly serve as a “model for responsible data center development”.

Indeed, the Hamina data center’s liquid cooling system uses sea water sourced from the Bay of Finland. It also has an offsite heat recovery facility, which is used to warm nearby households and businesses.

Finland in the spotlight

Finland has rapidly grown to become one of Europe’s leading data center infrastructure hubs. Research from Savills in August found the Finnish data center market has grown by 57% since 2024, making it one of the fastest-growing regions both in Europe and globally.

Google isn’t the only tech giant capitalizing on the Finnish market boom. A host of companies including Microsoft and TikTok have made significant investment pledges.

Microsoft, for example, signed a preliminary agreement to acquire 190 hectares of land in Vaasa and Mustasaari in June this year for data center development. Microsoft is also developing its first data center region in Southern Finland.

A key factor behind Microsoft’s expansion lies in the region’s existing industrial capabilities, Microsoft said at the time. The land it acquired is located in the GigaVaasa industrial zone.

TikTok, meanwhile, announced plans last year to invest €1 billion in its Kouvola data center, which is expected to have a capacity of 150MW.

FOLLOW US ON SOCIAL MEDIA

Follow ITPro on Google News and add us as a preferred source to keep tabs on all our latest news, analysis, views, and reviews.

You can also follow ITPro on LinkedIn, X, Facebook, and BlueSky.