Finnish authorities have ordered Google to suspend major construction activities at two planned artificial intelligence (AI) data centre sites after large-scale forest clearance took place before the completion of mandatory environmental impact assessments.
The order affects the company’s projects in Muhos and Otanmäki, where an estimated 250,000 trees were cut at Muhos and around 150,000 at Otanmäki, according to The Guardian. The developments form part of Google’s multibillion-euro investment in AI infrastructure in Finland.
The Finnish Licensing and Supervision Authority (LVV) directed Google’s local subsidiary, Tuike Finland Oy, to immediately stop preparatory activities that significantly alter the environment until the required environmental impact assessment (EIA) process is completed.
The restrictions cover tree felling, excavation, topsoil removal, road construction, drainage work and other major site preparation activities. However, planning, surveying and soil studies are permitted to continue.
Around 330 hectares (815 acres) of forest were cleared at Muhos, while nearly 200 hectares were logged at Otanmäki before the assessments were completed.
Google apologises after regulatory action
Google acknowledged the issue and apologised following the regulator’s intervention.
Antti Järvinen, Google’s Finland manager, told The Guardian that the company had acted “on the best understanding we had of the legislation at the time.”
The company also acknowledged that it had “fell short of our own high standards” and confirmed that preparatory work had stopped following the LVV’s order.
Google said it would comply with the regulator’s requirements and continue discussions with Finnish authorities. It has also proposed biodiversity measures, including plans to replant trees across approximately 130 hectares at the Muhos site.
Environmental concerns over forest clearance
The LVV said the extensive preparatory activities had already significantly altered the environment.
Environmental organisations and local residents have raised concerns about the ecological impact of the forest clearance. According to The Guardian, residents reported muddy runoff entering nearby waterways, while some claimed that animals displaced by logging had begun moving into nearby communities.
The incident has intensified debate over Finland’s growing role as a European hub for AI data centres. The country attracts technology companies because of its cool climate, renewable energy supply and digital infrastructure. The Finnish government has also encouraged investment in the sector.
However, environmental groups argue that large-scale developments must undergo mandatory environmental assessments before work that could significantly affect ecosystems begins.
A public petition calling for stricter regulation of data centre developments has reportedly gathered more than 93,000 signatures, according to The Guardian.
Google plans €13 billion investment in Finland
Google announced earlier this year that it planned to invest approximately €13 billion, or around $15 billion, in AI infrastructure across Finland through 2028.
The expansion includes projects in Hamina, Muhos, Kajaani and Vaala. The suspension at Muhos and Otanmäki highlights the environmental and regulatory challenges associated with the rapid expansion of data centre infrastructure.
The affected construction activities will remain suspended until the required environmental assessment process is completed and the relevant regulatory requirements are met.
