Finland launches criminal probe into land clearance for Google data centre

By Essi Lehto and Elviira Luoma

HELSINKI, Oct 29 (Reuters) - Finnish police said on Thursday they had launched a criminal investigation into suspected breaches of environmental law at the construction site of a planned Google data centre in northern Finland.

The project is part of a plan announced last month by Alphabet's Google to invest $15 billion in artificial intelligence infrastructure in Finland, which the US company described as its largest investment in Europe.

Authorities have said Tuike Finland, a subsidiary of Alphabet's Google, conducted forest clearing and drainage at a planned site near the town of Muhos before the environmental impact assessments required under Finnish law had been completed.

A Google spokesperson said the company would cooperate with the police investigation and continue to focus on maintaining compliance at its sites.

POLICE PROBE DRAINAGE AND WATER MANAGEMENT

"We are investigating whether the company's operations have breached the water act and resulted in environmental damage," Detective Superintendent Kari Pakanen told Reuters, adding that a guilty finding could lead to a corporate fine.

Pakanen declined to say whether any individuals could become a target of the investigation.

Preliminary information showed ambiguities and shortcomings in the drainage and water management at Tuike's site, police said in a statement, adding that they would give an update in December but that the investigation would extend into 2027.

On October 6, Finland's Supervisory Agency (LVV), which oversees environmental permits and assessments, ordered Google to halt preparatory measures altering the environment at Muhos as well as a separate site.

It is up to regulator LVV to decide on any permits to restart the work at the data centre sites, Pakanen said.

An LVV spokesperson said it was unclear how long it might take before the agency grants the relevant permits.

"We've partnered closely with the government and communities in Finland on infrastructure for over a decade, and are actively responding to enquiries from LVV and other authorities," the Google spokesperson said.

FINLAND'S APPEAL FOR DATA CENTRE INVESTMENT

Finland's cool climate, low-carbon electricity and government endorsement of AI projects have contributed to making the country one of Europe's main destinations for data centre investments in recent years.

Finland, similar in size to Germany but with a population of less than 6 million people, has had less vocal opposition to data centre buildouts than other places, including in the United States.

AI data centres are among the main drivers of a projected rise of up to 40% in Finland's electricity consumption in the coming years, if all agreed grid connection projects go ahead, grid operator Fingrid has said.

Google's planned investments in Finland include data centres, electricity grid improvements and clean energy and battery projects to power services such as Gemini, Search, Maps and YouTube.

Supporting Google's plan, Finland's Prime Minister Petteri Orpo last month said that the deal would be a boost for the economy, playing down concerns it would suck up energy and push up power prices.

The prime minister's office did not immediately respond to a request for comment.

(Reporting by Essi Lehto and Elviira Luoma. Additional reporting by Stine Jacobsen. Editing by Terje Solsvik, Xevi Fontdegloria and Mark Potter)