Finland Investigates Google Subsidiary Over Unapproved Forest Clearing for Datacentre

Finnish police have launched a criminal investigation into possible breaches of environmental laws at the site of a planned Google datacentre in rural northern Finland. Authorities allege that Tuike Finland, a Google subsidiary, cleared and drained 330 hectares (815 acres) of forest at the planned site in Muhos before completing environmental impact assessments required by Finnish law.

Police stated that the investigation will examine "ambiguities and shortcomings in the drainage and water management" at the site. Finland is attractive for datacentres due to its geopolitical stability, abundance of land, and cool climate, which helps cut energy costs. Finnish authorities are currently reviewing applications for 145 new datacentres, including Google's €13bn (£11bn) artificial intelligence infrastructure project, which the company calls its largest investment in Europe.

Earlier this month, Finnish authorities ordered Google to suspend work at two sites, Muhos and Otanmäki, located about 100km to the south-east, after the company failed to complete environmental impact assessments before clearcutting the land. The Supervisory Agency instructed Google to halt "preparatory measures altering the environment." Campaigners estimate that 250,000 trees have been felled at Muhos and an additional 150,000 at Otanmäki. Antti Järvinen, Google’s Finland country manager, has apologized for the clearings, asserting that the company had acted according to "the best understanding we had of the legislation at the time."

Despite the Finnish government, led by Prime Minister Petteri Orpo, having encouraged such projects—with Orpo stating in September that attracting investment was a "top priority" that would "deliver lasting benefits"—the revelations have sparked a national debate. This discussion centers on the broader implications of datacentre deals for local communities, the environment, and energy prices, potentially influencing parliamentary elections scheduled for April. More than 93,000 people have signed a petition demanding greater datacentre regulation and compensation for environmental damage. Jussi Kangasharju, a professor of computer science at the University of Helsinki, noted that datacentres bring limited local jobs and minimal national benefits, stating, "Really, for Finland, there are no benefits." He added that these are "international companies serving international customers" with little benefit for others beyond the operator.

What to watch: The outcome of the criminal investigation and its potential impact on future datacentre regulation in Finland.

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