Google announces €13b investments in Finland

Google on Wednesday announced to invest 13 billion euros over the next two years in data center and other supporting infrastructure and partnerships in Hamina, Muhos, Vaala, and Kajaani, said an official press release.

Finnish majority state-owned energy company Fortum and Google have entered a strategic partnership in Finland in operating the Loviisa nuclear power plant until the end of its operating licenses in 2050.

In addition, the companies have signed an MoU that will support both companies’ growth in Finland and bring additional energy supply to benefit Finland’s grid and the households and businesses it serves.

The companies look forward to further deepening their collaboration by exploring development of new nuclear, renewable energy and flexibility capacity solutions that support Google’s approach to meet their growth with additional low-carbon electricity.

Parties have structured the agreement to ensure that as demand for AI services grows additional low-carbon energy will be deployed to help safeguard long-term power supply for Finnish consumers and businesses.

Moreover, the collaboration between the two companies will advance new research and development (R&D) and engineering career pathways, positioning Finland at the cutting-edge of new energy technology and innovation.

“We are proud to have called Finland home for the past 15 years, and as we grow our footprint in the country, it’s critical that we work with local energy partners, such as Fortum, to understand what the grid needs and invest in energy solutions that deliver long-term resilience and affordability for all electricity customers,” says Aris Karcanias, Director of Energy, EMEA at Google.

Fortum and Google’s power purchase agreement (PPA) covers the lifetime extension period of the Loviisa nuclear power plant. The PPA will start in 2028 with a smaller capacity and will reach 50% of the Loviisa nuclear power plant’s capacity in 2030–2049.

The PPA with Google will provide the revenue certainty to continue the investments associated with 100% of the lifetime extension of Loviisa. Furthermore, the agreement is expected to enable a new 10 MW power increase of the plant, in addition to the already planned 38 MW uprate which is expected to be live in 2028.

“Long-term partnerships like the one between Fortum and Google are essential to making that happen, especially in today’s uncertain market environment characterized by low visibility and highly volatile electricity prices,” said Fortum’s President and CEO Markus Rauramo.