Google announced on the 9th (local time) that it will invest 13 billion euros (approximately 20.2 trillion Korean won) in Finland over the next two years to significantly expand AI data centers and power infrastructure. As power issues emerge as a key bottleneck in expanding AI infrastructure, Finland—a “nuclear powerhouse” with abundant nuclear-based power and a stable grid—has been chosen as the European AI hub.
As competition among big tech companies to lead in the AI market intensifies, the axis of competition is spreading beyond data center construction to a long-term power securing battle. Analysis suggests that countries with strong power infrastructure will benefit from global AI investments.
◇Google Chooses Finland, a Nuclear Powerhouse
Google plans to invest at least 13 billion euros in Finland between 2027 and 2028. In northern Finland, it will build three new data centers and expand investments in data centers and related infrastructure in Muhos, Vala, and Kajaani, including the existing Hamina data center. This is Google’s largest single investment in Europe. Google explained that these facilities will support its services such as Gemini, Search, Maps, and YouTube.
The core of this investment is power. Google signed a 22-year power purchase agreement (PPA) with Finnish energy company Fortum to secure nuclear power. Under the contract, Google will secure up to 50% of the Lovisa nuclear power plant’s capacity from 2030 to 2049. This is the first time Google has signed a nuclear power contract outside the United States. Ruth Porat, Google’s Chief Investment Officer (CIO), described it as “BYOP, Bring Your Own Power·prepare your own electricity.”
Finland is a nuclear powerhouse in Europe. It has operated nuclear power plants since the 1970s, and as of 2024, 39% of Finland’s power generation is nuclear, making it the largest single power source. While European countries like Germany reduce or close nuclear plants, Finland has maintained its nuclear infrastructure. Helsinki energy company Helen decided this year to invest up to 5 billion euros in a small modular reactor (SMR) project, expanding investments in advanced nuclear power.
Finland is one of the most advanced countries in spent nuclear fuel treatment. In Olkiluoto, Finland, there is Onkalo, the world’s first large-scale spent nuclear fuel deep geological disposal facility. It permanently disposes of spent nuclear fuel about 430 meters deep underground. Last month, it completed the safety evaluation for operational permission and began excavating the first disposal tunnel for nuclear fuel disposal. This contrasts with South Korea, which has yet to determine a disposal site and is only temporarily storing spent nuclear fuel at nuclear power plants.
◇Intensifying Big Tech’s “Power Securing Battle”
In the AI era, competition among big tech companies is spreading beyond data center construction to a stable power securing battle. Countries with stable power sources like Finland are evaluated to be absolutely advantageous. Reuters analyzed, “Along with the cold climate of Northern Europe, the stable power grid is becoming an attractive condition for attracting data centers that require massive power and cooling.” The Financial Times also stated, “One of the biggest infrastructure bottlenecks in the spread of AI is power shortages. In the data center competition, how stably power can be secured is the key condition.”
Big tech companies are desperate to secure stable power sources. Google also signed a power purchase contract of 200MW (megawatts) with nuclear fusion startup Commonwealth Fusion Systems (CFS). Microsoft agreed to purchase power for 20 years on the condition of restarting the Three Mile Island Unit 1 nuclear power plant in Pennsylvania.
As power shortages worsen, cases of turning to fossil fuel power generation like natural gas are increasing. Meta is promoting the construction of large-scale gas power plants to supply power to data centers in Ohio and Louisiana. Microsoft is also jointly developing a 2.67GW (gigawatt) natural gas power plant with Chevron to supply power to data centers in Texas, USA.
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