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“We understand the concerns and have fallen short of our own high standards in this instance,” a Google spokesperson told the publication. “We acted in good faith under the Forestry Act and ran nature surveys and put in place measures to protect high-value areas. As we continue our long-term work in the region, we are advancing our landscaping and biodiversity plans, which include tree planting across 130 hectares at Muhos.”
Finland is sometimes called the “Texas of Europe” when it comes to data centers because of its readily available supply of land and electricity, which have been some of the major bottlenecks that data center developers have been facing. Even though the epicenters of the AI data center infrastructure build-up are centered around the U.S. and China, Europe is trying to catch up with its massive $30 billion investment and a target of 100,000 AI GPUs for each site . SoftBank also plans to invest $87 billion specifically in France because of its nuclear-powered electricity grid.
However, other European nations are struggling with the demand for this power-hungry infrastructure. Denmark has paused new data center connection requests as demand hit 60GW — more than eight times the country’s peak power consumption of around 7GW — while Amazon ’s data center projects on the continent are facing delays of up to seven years as they wait for new connections.
These stop-work orders aren’t related to electricity supply, though. Instead, the concerns stem from the alleged cutting of trees without the go-signal from the government. The LVV ordered the subsidiary to stop removing trees and topsoil, as well as cease activities such as excavation, quarrying, crushing, soil mass transfers, ditching, and road and storage construction. “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,” LVV environmental department head Tommi Muilu said in a statement. Still, the subsidiary can proceed with planning, measurement, soil surveys, and other activities that would only have minimal impacts.
Google AI data center project investigated after 420 football fields of Finnish forest demolished
Microsoft-backed AI data center faces backlash over alleged unpermitted gas turbines and 1.5M-gallon LNG tank
Amazon warns $68 billion in blocked data centers threatens US AI lead
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/data-centers/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/data-centers/finland-orders-google-to-stop-work-on-two-ai-data-centers-over-alleged-deforestation-company-admits-it-has-fallen-short-of-our-own-high-standards-in-this-instance#main
- https://www.tomshardware.com/membership
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Informational only. No financial advice. Do your own research.