Finland pauses Google data center construction

Regulators in Finland have halted construction at two Google data center sites after more than 300 hectares of forest were cleared without completed environmental assessments.

The Finnish Licensing and Supervision Authority, or LVV, on Tuesday ordered Google's subsidiary behind the projects, Tuike Finland Oy, to stop all preparatory work at sites in Muhos and Kajaani by Oct 23. The order covers tree felling, excavation, soil removal, and the construction of roads and storage areas.

Investigators for the authority found that Tuike Finland Oy had felled roughly 330 hectares of forest in Muhos and has reportedly been logging across nearly 200 hectares in Kajaani without completing the required environmental impact assessments, Agence France-Presse reported.

The LVV ordered the company to "immediately suspend" the latest "preparatory measures that significantly change the environment" at both sites until the required environmental assessment is complete. Google must submit a written explanation and detail how it intends to proceed by Wednesday.

The environmental impact assessment is still underway and is expected to conclude later this year. However, the LVV said Google had already carried out "extensive preparatory measures", including tree removal, topsoil stripping and road construction.

Tommi Muilu, head of the LVV's environmental department, said, "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 (environmental impact assessment) procedure."

The projects form part of Google's $14.5 billion investment in Finland — its largest single investment in Europe. The halt does not cancel the projects but requires completing environmental assessments first.

Google has acknowledged falling short of its environmental standards and says it will comply with the regulator's guidance.

The company said in a statement that "we understand the concerns" and that it had "fallen short of our own high standards".

"We will study the LVV's findings and follow their guidance," it said.

"We acted in good faith under the Forestry Act, and ran nature surveys and put in place measures to protect high-value areas. As we continue our long-term work in the region, we are advancing our landscaping and biodiversity plans, which include tree planting across 130 hectares at Muhos," it added.

Tapani Veistola, chief operating officer of the Finnish Association for Nature Conservation, described the failures at both sites as a "systemic problem". Muhos, he said, is "not a forest any more" but "a sand area".

He attributed the situation to intense pressure to build data centers in Finland, which is driving companies to accelerate timelines and straining the capacity of local authorities.

"The main reason behind everything is the overheated market situation that makes companies speed up processes so much. Also a lack of expertise in municipalities," Veistola said.

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