Google's $15 Billion Finland AI Push Hits Roadblock as Regulators Order Halt at 2 Data Centers Pending Environmental Reviews

Regulators have ordered Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google to pause construction at two planned Finnish data centers pending environmental impact reviews. On Tuesday, Finland’s Licensing and Supervision Agency, or LVV, directed Tuike Finland Oy, a unit of Google, to suspend work on projects in Muhos and Kajaani. The agency requires the construction activities to stop by October 23. The suspension order covers tree and topsoil removal, excavation, quarrying, soil transfers, ditching, road construction and storage-area preparation. The order, however, does not cover planning, measurements, soil surveys or other minor, easily reversible activities. Tommi Muilu, head of LVV’s environmental department, said the measures in question could alter the environment and create impacts that need to be identified and assessed through the Environmental Impact Assessment (EIA) process. Google told CNBC it understood the concerns, acknowledged that it had not met its own standards and would follow the agency’s instructions. The company said it acted in good faith under Finland’s Forestry Act and completed nature surveys and protection measures. As part of its biodiversity plans, Google said it intends to plant trees across 130 hectares, or about 320 acres, at the Muhos site. Alphabet did not immediately respond to Benzinga’s request for comments. Read Also: Meta, Google Put $300M Into Zuckerberg-Backed $1.8B AI Biology Bet Nordic Data Centers Draw AI Giants Nordic countries have become increasingly attractive for data centers due to their cool climate, tax breaks and abundant renewable energy. In June, French AI startup Mistral AI announced a €1.2 billion ($1.43 billion) investment with Sweden’s EcoDataCenter to build an AI-focused data center at EcoDataCenter’s Borlänge site. The facility would mark Mistral AI’s first AI facility outside France. The suspension comes shortly after Google outlined a €13 billion (about $15.13 billion) investment to expand AI infrastructure in Finland in September. The company plans to invest over two years in the country to expand digital infrastructure, clean energy and local partnerships amid rising demand for Search, Maps and Gemini. The investment includes a 22-year agreement to support the Loviisa nuclear plant’s life extension, new onshore wind capacity and a 94-MW battery system. The September commitment significantly exceeds Google’s earlier expansion plans. In May 2024, the company announced an additional €1 billion (around $1.1 billion) investment in its Finnish data center campus. Price Action: On a year-to-date basis, Alphabet stock surged 10.70%, as per Benzinga Pro. On Wednesday, it climbed 0.81% to close at $347.37. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Also: Google Just Hit Pause on Its Open-Source Bug Bounty Program —Explosive Surge in Submissions Has Left the Company Reworking Its Program Image via Shutterstock