Finland orders Google to halt data center work in Muhos and Kajaani

The Finnish Licensing and Supervision Agency (LVV) has ordered Google subsidiary Tuike Finland Oy to stop preparatory work at its planned data center sites in Muhos and Kajaani until mandatory environmental impact assessments are complete, CNBC reported Wednesday. The agency issued the notice on Tuesday. Measures that significantly alter the environment must stop immediately and no later than October 23.

The suspension covers tree removal, topsoil removal, excavation, quarrying, crushing, moving soil, ditching and building roads and storage areas, according to the LVV notice as reported by CNBC. It does not cover planning, measurements, soil surveys or other low-impact work that can easily be restored. Tuike Finland has until October 14 to explain itself and set out how it intends to proceed, and the agency said it could begin enforcement proceedings if the company does not comply. A fine is also possible, The Guardian reported.

The order follows concerns over the clearance of more than 300 hectares of forest, the BBC reported. Sondre Ronander, Google’s communications manager for Finland and Norway, confirmed to Yle that trees had been felled across about 330 hectares at Muhos and just under 200 hectares at Kajaani. “In our opinion, the measures in question will change the environment and cause impacts, the identification and assessment of which are among the key objectives of the EIA procedure,” said Tommi Muilu, head of LVV’s environmental department.

“We understand the concerns and have fallen short of our own high standards in this instance,” a Google spokesperson told CNBC, adding that the company would follow the LVV’s guidance. The spokesperson said Google “acted in good faith under the Forestry Act,” ran nature surveys and put in place measures to protect high-value areas, and is advancing landscaping and biodiversity plans that include planting trees across 130 hectares at Muhos.

Both sites belong to the 13 billion euro (about $15 billion) Finland investment Google announced in September, which it called its largest in Europe. Environment and Climate Minister Sari Multala said the projects will likely be delayed, Euronews reported, and told Helsingin Sanomat that “this is a serious matter: all companies operating in Finland must comply with the law. In this case, that has not happened.”

Demand from AI data center developers chasing Finland’s land and power has earned the country the nickname “Texas of Europe,” CNBC noted. Sari Myllyoja, head of LVV’s communities and infrastructure unit, told Yle the order is highly unusual and that it could take several months before Google can restart the suspended work. The buildout is drawing scrutiny elsewhere too: in Texas itself, Gov. Greg Abbott halted data center environmental permits last month pending a grid audit.

Finland orders Google to halt data center work in Muhos and Kajaani

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