Google told to stop forest clearing for two data centres in Finland weeks after announcing its biggest European investment

Finland's licensing and supervision agency has told Google to halt work at two planned data centre sites until environmental impact assessments are completed. The order is a setback for the tech giant in a country increasingly called the "Texas of Europe" for the data centre investment it attracts.

The Finnish Licensing and Supervision Agency (LVV) issued the notice on Tuesday to Tuike Finland Oy, Google's local subsidiary, according to a TOI report that cited CNBC. It covers projects planned in Muhos and Kajaani. LVV said the company must stop the specified work immediately and no later than October 23.

What the regulator wants halted


The suspension covers tree removal, topsoil removal, excavation, quarrying, crushing, moving soil, ditching and the construction of site roads and storage areas, LVV said. It does not cover planning, measurements, soil surveys or other minor work that can easily be reversed.

Tommi Muilu, head of LVV's environment department, said large-scale preparatory work had already been done at the sites, including tree removal and topsoil stripping. "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," he said.

The notice is a formal call to act under Finland's environmental impact assessment law, not yet a binding order. Tuike has until October 14 to respond in writing and say whether it will comply. LVV said that if the company does not, it will consider administrative enforcement, which can be backed by a conditional fine. The agency said it would first prefer that the company corrects the situation voluntarily.

LVV had asked Tuike and the municipalities of Muhos and Kajaani for explanations on September 18. The environmental assessments for both projects are still under way, and LVV expects the assessment reports to be completed during 2026.

Google's response

Google said it would follow LVV's guidance. "We understand the concerns and have fallen short of our own high standards in this instance," a Google spokesperson told CNBC.

The company said it had acted within the law. "We acted in good faith under the Forestry Act, and ran nature surveys and put in place measures to protect high-value areas," the spokesperson said. Google said it is advancing landscaping and biodiversity plans, including tree planting across 130 hectares at Muhos.

Google confirmed to Finnish broadcaster Yle that about 330 hectares of forest were cleared in Muhos and nearly 200 hectares in Kajaani, Yle reported. Finland's environment minister Sari Multala said the projects will likely be delayed because of the problems with the assessments, Euronews reported.

Why Finland is the 'Texas of Europe'

Finland has become an important destination for data centres as demand for computing infrastructure grows with AI, TOI reported. The country offers available land and power at a time when electricity capacity is tight in several parts of Europe. Several projects with potential capacity of hundreds of megawatts have been announced, which led to the nickname. Texas is one of the main US locations for AI data centres, with companies including Google, Meta, Microsoft and Anthropic announcing large projects there, according to the TOI report.

The halt comes about a month after Google announced on September 9 that it would invest €13 billion, or about $15 billion, in Finland across 2027 and 2028. The company described it as its largest single investment in Europe. It covers data centres and supporting infrastructure in Hamina, Kajaani, Muhos and Vaala, along with energy projects. These include a 22-year power purchase agreement with Fortum tied to the life extension of the Loviisa nuclear power plant.

Google has not said that the suspension changes its long-term plans in Finland, according to the TOI report. LVV's notice covers only the Muhos and Kajaani sites.

(With inputs from TOI)