Google invests $1.1 billion to expand Finnish data center, fueling AI innovation in Europe

Google is set to invest an extra $1.1 billion to expand its data center in Hamina, Finland, to boost its artificial intelligence (AI) business growth in Europe.   

The Hamina facility is one of Google’s most advanced and efficient data centers and Finland’s most significant foreign greenfield investment.   

Finland’s Industry experts argue that the Nordic countries must utilize their renewal power for products like green steel.  

But Finland’s wind power capacity has increased so rapidly in recent years, by 75% to 5677 megawatts in 2022 alone that prices have plummeted to negative on windy days.  

Also, one key reason the Nordics prefer data center development is the cold climate, which allows operators to significantly decrease cooling costs and improve energy efficiency. In addition, many governments in the Nordic regions are rolling out AI strategies, leading to maximizing data generation and driving the demand for data center infrastructure.  

Google has invested $3.5 billion in its Hamina data center and linked infrastructure. The latest investment incorporates a strategic collaboration with Haminan Energia, the local district heating provider, to collect, capture, and repurpose heat generated by the data center for district heating.  

Some Nordic countries worry about utilizing renewable energy for data centers. Finland’s wind power capacity is growing immediately, which means plenty of renewable energy is available.  

Also, this expansion does not affect other green energy uses like green steel products. Green Steel provides high economic value to the region.