Finland halts work on two Google data center sites over environmental reviews

Regulatory intervention at two sites

On 6 October 2026, the Finnish Licensing and Supervisory Authority (LVV) ordered a halt to preparatory construction at two planned Google data center projects in Muhos and Kajaani. The state agency instructed project developers that all preparatory measures with the potential to significantly alter the local environment must cease by 23 October 2026. The freeze will remain in place until comprehensive and mandatory environmental impact assessments have been conducted and approved. The decision follows a supervisory inquiry initiated by the LVV to determine whether site preparations complied with Finnish environmental laws. Regulators stated that if the operating parties fail to halt work within the designated timeframe, the government authority is prepared to open formal coercive legal proceedings.

Deforestation inquiry in Muhos and Kajaani

The LVV investigation centres on Tuike Finland, the corporate entity acting on behalf of Google for the site developments. The regulatory agency suspects Tuike Finland of clearing hundreds of hectares of woodland across both project parcels without conducting the statutory environmental review in advance. In Muhos, regulators reported that more than 300 hectares of forest were cut down prior to the supervisory order. An on-site visit conducted by AFP in Muhos documented active earthworks, with excavators moving across cleared land where standing forest adjacent to local residential properties had been removed. The regulatory authority intervened after confirming that land clearance had taken place before the submission of the mandatory environmental paperwork.

Corporate response and infrastructure plans

Google responded to the suspension by accepting the findings of the supervisory authority and committing to halt the affected works. The company addressed the regulatory order through an official statement from spokesperson Sondre Ronander.

We understand the concerns expressed and acknowledge that, in this specific case, we have not lived up to our own high standards. We will examine the agency's findings and follow its recommendations.

The two suspended sites in Muhos and Kajaani are central components of a 13 billion euro (15 billion dollar) digital infrastructure package that Google unveiled in September 2026. That plan represents the technology company's largest single capital commitment for new server facilities in Europe to date. In addition to Muhos and Kajaani, the multi-site initiative includes planned data infrastructure in Vaala as well as further expansion in the coastal town of Hamina.

Industrial expansion and resource demands

Google first established its operational presence in Finland in 2009 by acquiring a former paper mill in Hamina and converting the industrial property into a data center. The company has steadily expanded that facility, which now operates alongside Finland's growing cluster of commercial digital hubs. Finland has attracted extensive data center development in recent years due to its cool Nordic climate and a relatively stable, low-cost power grid. The industry views expanding processing capacity as an essential resource to support growing cloud computing platforms and artificial intelligence workloads. However, the high electricity requirements and intermittent water usage associated with large-scale digital infrastructure continue to prompt local discussions regarding environmental sustainability. Development at Muhos and Kajaani cannot legally resume until the full environmental impact assessment process concludes.