Finland Orders Pause on Two Google Data Centre Projects Over Environmental Concerns

Helsinki, Finland — October 7, 2026 — Finnish authorities have ordered work to be halted at two planned Google data centre sites after concerns emerged over forest clearance and the absence of completed environmental impact assessments.

The order affects projects in Muhos and Kajaani, which form part of Google’s planned €13 billion investment in Finnish digital infrastructure. Google announced the investment in September, describing it as its largest single investment in Europe and linking it to the expansion of artificial-intelligence infrastructure.

Environmental assessment at the centre of dispute

Finland’s Permit and Supervision Agency, known as LVV, has instructed Tuike Finland, the company representing Google’s projects, to suspend preparatory activities that could significantly alter the environment.

The agency said the work must be stopped immediately and, at the latest, by October 23, 2026, while the required environmental impact assessment procedures are completed. The company has also been asked to provide an explanation of its position by October 14.

Activities already carried out at the sites reportedly included tree and topsoil removal, road construction, storage areas and changes to drainage systems.

The Muhos development covers a particularly large area. Project documents describe plans for multiple data-centre buildings and supporting infrastructure, while Finnish authorities have raised concerns about the scale of land alteration before the environmental review was completed.

Forest clearance raises concern

The dispute has intensified because of the amount of forest cleared in connection with the developments. Reports indicate that approximately 330 hectares had been cleared at the Muhos site, while close to 200 hectares had been prepared at Kajaani.

Environmental groups have criticized the pace of development and argued that environmental safeguards should have been completed before substantial changes were made to the land.

The controversy highlights a growing challenge for Finland, which has attracted major technology investments because of its relatively cool climate, reliable electricity system and access to low-carbon power. At the same time, the rapid growth of energy-intensive data centres has generated debate about electricity demand, infrastructure capacity and environmental protection.

Google acknowledges concerns

Google has said it understands the concerns raised by Finnish authorities and acknowledged that it had fallen short of its own environmental standards in the situation.

The company has maintained that it acted in good faith under Finnish forestry rules, conducted nature surveys and introduced measures intended to protect areas considered environmentally valuable.

Google’s broader Finnish investment remains significant. The company says its €13 billion programme will cover projects and supporting infrastructure in Hamina, Kajaani, Muhos and Vaala, alongside investments in energy, biodiversity and local communities.

Bigger test for AI infrastructure

The Finnish dispute comes as technology companies race to build data centres capable of supporting increasingly demanding AI services.

For Finland, the issue is becoming a balancing act: attracting billions of euros in technology investment while ensuring that large developments comply with environmental rules and do not put excessive pressure on land or electricity resources.

The current order does not mean that Google’s entire Finnish investment has been cancelled. Instead, it specifically concerns environmentally significant preparatory work at the Muhos and Kajaani projects while the required assessments and regulatory questions are addressed.

The next steps will depend on Google’s response to the Finnish authorities and the progress of the environmental assessment process.