Finland probes Google's 330-hectare datacentre forest clearing

By Grace Kim

Finnish police opened a criminal investigation on Thursday into possible environmental-law breaches at a planned Google datacentre in rural northern Finland, where authorities allege Google subsidiary Tuike Finland Oy cleared and drained 330 hectares (815 acres) of forest in Muhos.

What triggered the criminal investigation?

Authorities allege the Google subsidiary cleared and drained the land before environmental impact assessments required by Finnish law had been completed.

“Based on preliminary information, there have been ambiguities and shortcomings in the drainage and water management at the construction site of Tuike Finland Oy’s datacentre project,” Finnish police said in a statement on Thursday.

“The criminal investigation will examine, among other things, circumstances related to these issues,” they added.

Earlier this month, Finnish authorities ordered Google to suspend work at Muhos and at Otanmäki, about 100 km southeast of Muhos, after the company failed to complete required environmental impact assessments before clearcutting the land. The Supervisory Agency, which oversees environmental permits and assessments, told Google to halt preparatory measures that alter the environment.

Campaigners cited by the report estimate that 250,000 trees were felled at Muhos and 150,000 at Otanmäki. Google’s Finland country manager, Antti Järvinen, apologized for the forest clearings. He said the company had acted according to its best understanding of the legislation at the time.

For now, the permit dispute has become a criminal inquiry focused on drainage and water management.

How large is the datacentre pipeline?

Finnish authorities are considering applications for a total of 145 new datacentres at various stages of planning. That pipeline includes a €13bn (£11bn) artificial intelligence infrastructure project by the U.S. company Google, which has called it its largest investment in Europe.

The report said Finland, like other Nordic countries, attracts technology companies seeking datacentres because of its relative geopolitical stability and abundant land. It also said the cool climate should allow operators to cut energy costs.

The Finnish government has encouraged the projects. In September, when Google announced its plans, Prime Minister Petteri Orpo said attracting investment was a top priority and the deal would deliver lasting benefits.

Finland’s 145-application pipeline now includes Google’s largest European investment.

What does the dispute mean for Finland?

The source report said Google’s alleged misconduct has sparked a national debate over what datacentre deals mean for communities, the environment and energy prices. The issue could affect parliamentary elections due in April.

More than 93,000 people have signed a petition demanding more datacentre regulation and compensation for environmental damage. Experts cited by the report say datacentres bring a limited number of local jobs and deliver minimal benefits at the national level.

“Really, for Finland, there are no benefits,” said Jussi Kangasharju, professor of computer science at the University of Helsinki. “They are international companies serving international customers. Datacentres ultimately have little benefit for others except the datacentre operator.”

The criminal investigation and April election will put Google’s Finnish investment strategy against the country’s environmental and local-benefit concerns.