Finland risks strained power supply after Google AI deal, opposition warns

By Essi Lehto

HELSINKI, Sept 10 (Reuters) - Finland should introduce a national permitting system for data centres to prevent the risk of power shortages and soaring energy prices, opposition parties said on Thursday following Google's announcement of a large new investment in the country.

The Nordic region has for years been a magnet for data centres thanks to a cool climate, abundant low-carbon electricity and reliable power grids, but AI builders are now facing greater scrutiny from consumers and politicians.

Alphabet's Google said on Wednesday it will spend at least €13 billion ($15.1 billion) on AI infrastructure in Finland over the next two years, its biggest European investment, including a deal for the supply of nuclear power.

While data centres are welcome in Finland, the country must make sure there is enough electricity and transmission capacity to power them, Centre Party leader Antti Kaikkonen told Reuters.

"A national permitting system for new data centre investments would be needed. At the moment, no one is really looking after the overall picture," said Kaikkonen, whose party is Finland's second-largest opposition group.

The Social Democratic Party, which is leading in the polls ahead of an election due in April, said that while it welcomed data centre investments, it remains concerned about the implications for power demand.

"It is particularly important that the availability of electricity is also examined as a broader internal security issue, so that people have enough energy and that it is priced at a level they can afford to use," Social Democratic lawmaker Niina Malm said.

Google's deal included a 22-year purchase agreement for up to 50% of the energy output from Finland's Loviisa nuclear plant, helping extend the expected life of the plant until 2050, from a previous shutdown date in 2030.

The company would also explore the development of new nuclear and renewable energy in Finland alongside utility Fortum, the two groups said.

Finland's Prime Minister Petteri Orpo has said the Google deal will boost the country's economy and that electricity prices will remain under control.

The government did not immediately respond to a request for comment.

($1 = 0.8604 euros)

(Reporting by Essi Lehto, editing by Terje Solsvik and Elaine Hardcastle)