Finland orders Google to halt data center work over environmental concerns
AI Summary
Finnish authorities halted Google's data center construction in Muhos and Kajaani after 300 hectares of forest were cleared without required environmental assessments.
Finnish authorities have ordered Google subsidiary Tuike Finland Oy to stop construction on two data center projects in Muhos and Kajaani following the clearing of 300 hectares of forest.
The Finnish Licensing and Supervision Agency (LVV) issued the notice on Tuesday, directing the tech giant to suspend activities that could cause significant environmental changes. According to International and OnlineKhabar, the suspension applies to tree clearing, topsoil removal, excavation, and the construction of access roads and storage areas. The LVV has set a deadline of October 23 for work to stop, though minor activities such as soil surveys and planning are still permitted.
Tommi Muilu, head of the LVV's environmental department, stated that these measures require an Environmental Impact Assessment (EIA) to identify potential impacts. OnlineKhabar reports that pre-construction work had already begun at least at one site without this mandatory assessment. Tuike Finland has been ordered to explain the incident and submit a future action plan by October 14, with the agency warning of potential enforcement action if the order is ignored.
A Google spokesperson told CNBC that the company had fallen short of its own high standards and would follow the LVV's guidance. However, the company maintained it acted in good faith under the Forestry Act and conducted nature surveys to protect high-value areas. As part of its long-term biodiversity plans, Google announced it intends to plant trees across 130 hectares at the Muhos site.
Hanna Halmenpaa, chair of the Finnish Association for Nature Conservation, had previously claimed that trees were cut in areas that required protection. While International reports the total investment at $15 billion, OnlineKhabar and Online Khabar specify a commitment of 13 billion euros to be deployed through 2028 for centers in Kajaani, Muhos, and Vaala.
Background
The suspension comes one month after Google announced its largest ever investment in Europe to expand AI infrastructure in Finland. The country has seen a surge in data center interest due to available land and power, leading it to be nicknamed the 'Texas of Europe.'
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