Google Goes Nuclear in Nordic Data Center Push

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Google has committed to taking half of the electricity produced by Finland's Loviisa nuclear power plant for the next two decades as part of a major data center push in the country.

Major Investment in Data Centers

Google plans to invest €13 billion (US$15 billion) in building data centers in Finland and has agreed a 20-year power offtake deal that secures the future for the country's oldest nuclear power plant. The investment will happen over 2027-2028 across four municipalities: Hamina (expanding the existing campus), plus three new sites in Kajaani, Muhos and Vaala. It is the company's largest data center investment in Europe and one of the largest ever in the Finnish economy. During the initial construction phase in 2027 and 2028, it is claimed that more than 37,000 jobs nationwide will be supported and will contribute €3.6 billion (US$4.1 billion) annually to Finland's GDP. According to Industrial Info Resources data, there are 121 data center projects in Finland worth almost US$69 billion in investment. 

The Company Take

"Since we converted a former paper mill in Hamina into a data center 15 years ago, Finland has been a vital hub for Google," said Bikash Koley, vice president for Google Global Infrastructure. "Today, we're deepening that commitment with a €13 billion investment in digital infrastructure, clean energy projects and economic partnerships across Finland over the next two years, to help meet growing demand for Google's core services - such as Search, Maps, and Gemini. Today's announcement, our largest single investment in Europe, will provide a significant boost to the Finnish economy." Industrial Info is tracking four active Google projects at Hamina worth US$780 million in investment. 

Prime Minister's Welcome

Prime Minister Petteri Orpo said: "This is a very important day for Finland. Google's historically large investment in Muhos, Vaala, Kajaani and Hamina is a strong vote of confidence in Finland. Decisions on investments of this scale are not made by chance. Countries with stable operating environments, a skilled labour force and reliable infrastructure are the ones that succeed in international competition. In an increasingly digitalised world, data centres are vital infrastructure. They provide the foundation for artificial intelligence, cloud services, industrial digitalisation, research, and the digital services that people and businesses use every day. For this reason, international competition for data centre investments is hard. Finland has done well in this competition." 

The Nuclear Connection

The company has committed to taking half of the electricity produced by Finland's Loviisa nuclear power plant in a deal that will secure the expected €1 billion (US$15 billion) of investment that owner Fortum said it will need to keep the plant running. The 20-year power purchase agreement (PPA) provides "economic certainty for the lifetime extension and power upgrade of the plant through 2050 by contracting for up to 50% of Loviisa nuclear power plant's capacity." Loviisa is one of two nuclear power plants in Finland, along with the larger Olkiluoto facility, which supply 37% of the country's power. "Without the lifetime extension investment program, the Loviisa plant -- which currently employs approximately 580 people and provides 10% of Finland's electricity -- could not continue operations beyond 2030, " Fortum admitted. "Keeping this fossil-free energy asset online for decades to come will help stabilize electricity prices and support long-term resilience of Finland's grid."

Fortum's President and Chief Executive Officer Markus Rauramo said: "Finland has a unique opportunity to turn its decarbonised, reliable electricity system and robust industrial infrastructure into a foundation for the next wave of sustainable industrial growth. Long-term partnerships like the one between Fortum and Google are essential to making that happen, especially in today's uncertain market environment characterized by low visibility and highly volatile electricity prices. "Our collaboration with Google provides a strong foundation for the continued development and reliable operation of our Loviisa power plant for decades to come." 

Key Takeaways

• Google is investing €13 billion (US$15 billion) to build data centers in Finland.
• It includes a 20-year power offtake deal for half the power at the Loviisa nuclear power plant. 
• Industrial Info Resources is tracking 121 data center projects in Finland worth almost US$69 billion in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).