Google to invest $14.9b in Finland's digital infrastructure, a lifeline after Nokia's decline

Google will invest more than 20 trillion won ($14.9 billion) in Finland's digital infrastructure, including AI data centers, over the next two years. The investment marks Google's largest single investment in Europe to date.

According to Yonhap, AFP reported Wednesday (local time) that Google had agreed to invest at least 13 billion euros ($15.1 billion) in Finland's digital infrastructure over the next two years.

Google said in a statement that day that the investment represents "the largest single investment Google has made in Europe, and a testament to Finland's leadership in responsibly building AI infrastructure." Google added that the funds would cover not only the construction of data centers and supporting infrastructure but also "clean energy projects," including collaborative initiatives with municipalities such as Hamina, Kajaani and Muhos.

Finnish Prime Minister Petteri Orpo welcomed the announcement, saying, "Google's decision clearly demonstrates our strengths."

Orpo said the value of the data economy is not limited to direct investment but has broad effects that spur innovation and research and development. "Strengthening our cooperation with Google will bring lasting benefits for both sides," he added.

Google has gradually expanded its operations in Finland since 2009, when it acquired a former paper mill in the coastal city of Hamina and converted it into a data center.

Google estimated that the investment would boost Finland's GDP by 3.6 billion euros annually and create more than 37,000 jobs nationwide. Of those, 16,000 jobs are expected to come from construction work between 2027 and 2028. After the construction phase is completed, Google projected that about 7,000 jobs would be sustained annually in the operation of the digital infrastructure.

Finland, located within the Arctic Circle, has seen its data center industry grow rapidly, benefiting from an abundance of clean energy — including nuclear power, wind and hydropower. This has allowed for relatively cheap and stable electricity.

The right-leaning government led by Orpo has made attracting investment in the data center industry a key policy priority. The move aims to address the country's record-high unemployment rate and sluggish growth.

Finland has recently been grappling with a severe economic slowdown and rising unemployment. The decline of telecom equipment maker Nokia, which failed to adapt to the smartphone era, left a void with no clear successor to drive the economy. That has been compounded by the halt in trade with neighboring Russia amid the war in Ukraine, high inflation, and a fiscal deficit driven by rising welfare spending.