Finland orders Google to pause data center work after forest clearing

Finland's licensing regulator has ordered Google to stop clearing land at two planned data center sites until environmental reviews are finished. CNBC reported that the Licensing and Supervision Authority, known as LVV, told Google subsidiary Tuike Finland Oy to suspend construction work in Muhos and Kajaani until environmental impact assessments are completed.

The order follows the clearing of a large forest area. The Guardian reports that Tuike Finland cut down 330 hectares (815 acres) of forest in Muhos without first completing an environmental impact assessment. An estimated quarter of a million trees stood on the Muhos site before it was cleared, according to The Guardian.

Key facts

• LVV ordered Google's subsidiary to halt work at the sites by an Oct. 23 deadline, CNBC reported.
• The Guardian says 330 hectares of forest were cleared in Muhos without an environmental assessment.
• LVV said it would consider enforcement steps and a fine if Google does not comply, The Guardian reported.
• A Google spokesperson said the company would follow LVV's guidance, according to CNBC.
• The sites belong to a €13 billion AI infrastructure project, The Guardian reported.

What the regulator ordered

The order applies to Muhos and to a second site near Kajaani.

The suspension is broad. According to CNBC, it covers tree removal, topsoil removal, excavation and quarrying, as well as ditching and building roads and storage areas. CNBC said the order does not cover planning, measurements or soil surveys.

LVV warned of consequences if the company does not follow the order. The Guardian reported that the regulator said it would weigh enforcement proceedings and a fine in that case. Whether fines or other action will follow is not known.

What Google said

Google acknowledged the problem. A Google spokesperson said the company understood the concerns and would follow LVV's guidance, CNBC reported. The spokesperson said the company had "fallen short of our own high standards in this instance," according to CNBC.

The company also defended its actions. CNBC said Google maintained it acted in good faith under the Forestry Act. Google said it plans to plant trees across 130 hectares at Muhos, CNBC reported.

The Guardian reported that Google's Finland country manager, Antti Järvinen, apologized for clearing the forest.

Background

The data center sites are part of a large investment push. The Guardian said they belong to a €13 billion AI infrastructure project by Google, the largest of its kind in Finland. CNBC says Google pledged to invest $15 billion in Finland through 2028, its biggest investment in Europe.

The cleared area in Muhos is large. The Guardian reports it measures 3km long and 2km wide, and it sits 400 metres from the Oulujoki River.

Finland is seeing a wave of similar projects. The Guardian reports the country has 145 new data centers at various stages of planning.

Political leaders had welcomed Google's plans. The Guardian said Prime Minister Petteri Orpo called attracting investment a "top priority" when the plans were announced. He later described what happened in Muhos as a "cold shower," according to The Guardian.

Who is affected

People living near the Muhos site have raised concerns about water. The Guardian reports that residents say brown water running off the site is flowing into a stream that feeds the Oulujoki River.

The order also affects Google's construction timeline. It is not known when work can resume at either site.

What it means for you

For people in Finland, the case raises questions about how large tech projects are reviewed before work begins. The Guardian reports that Finland has 145 new data centers in planning, so the rules applied in Muhos could matter well beyond one site.

For Google, the order puts part of a major investment on hold. The company has pledged $15 billion in Finland through 2028, according to CNBC.

What happens next

The environmental review is still underway. The Guardian reports that the assessment is expected to be finished later this year.

The issue may also shape national politics. The Guardian says the data center push is likely to be a key issue in Finland's April elections.

FAQ

Did Google decide to stop work on its own? No. CNBC reported that Finland's regulator ordered the subsidiary to suspend the work until the environmental assessments are done.

What did Google say? A Google spokesperson said the company had "fallen short of our own high standards in this instance," CNBC reported.

What happens if Google does not comply? The Guardian reported that LVV said it would consider enforcement proceedings and a fine.

How much forest was cleared? The Guardian says 330 hectares were felled in Muhos, where The Guardian estimates a quarter of a million trees had stood.

What work is still allowed? CNBC said the order does not cover planning, measurements or soil surveys.

Where are the sites? CNBC said the sites are in Muhos and Kajaani. The Guardian reports the Muhos site lies 400 metres from the Oulujoki River.

How big is Google's investment in Finland? CNBC says Google committed to invest $15 billion in Finland through 2028. The Guardian described the sites as part of a €13 billion AI infrastructure project.

Why are residents worried? The Guardian reports residents say brown water from the site is running into a stream that feeds the Oulujoki River.

Will Google replant trees? Google said it plans tree planting across 130 hectares at Muhos, CNBC reported.

When will the environmental review be done? The Guardian reports it is expected to wrap up later this year.