Finland Orders Google to Halt Data Center Work Over Illegal Forest Clearing

Aerial view of cleared forest land at the Muhos, Finland site where Google is building a data center

Last updated: October 26, 2026, 08:40 IST.

Finland’s environmental regulator has ordered Google’s local subsidiary to halt preparatory work at two planned AI data center sites after finding that hundreds of hectares of forest were cleared without a required environmental assessment. The order covers sites in Muhos and Kajaani, part of Google’s announced 13 billion euro ($15 billion) investment in the country.

What Finland’s regulator ordered

The Finnish Licensing and Supervision Agency, known as LVV, directed Tuike Finland, the company representing Google on the projects, to “immediately suspend, and no later than 23 October 2026, all preparatory measures” that would significantly alter the environment at the two sites, according to Al Jazeera’s reporting on the LVV order.

Tommi Muilu, head of LVV’s environment department, said the cleared work included tree and topsoil removal, construction of site roads and storage areas, and changes to drainage ditches, all carried out before the mandatory environmental impact assessment was completed for either site. LVV also required Tuike Finland to explain how it intended to proceed by October 14.

Finnish public broadcaster Yle reported that police opened a preliminary investigation into the Muhos preparatory work after a private individual filed a complaint on October 2, separate from LVV’s own administrative review.

Aerial view of cleared forest land at the Muhos, Finland site where Google is building a data center
Photo: Alessandro Rampazzo / AFP, via Al Jazeera, used under fair use, pending licensing review.

How much forest was cleared

Estimates of the cleared area vary slightly by outlet, but reporting puts the figure at roughly 330 hectares in Muhos and close to 200 hectares in Kajaani, a combined deforested area of more than 300 hectares (741 acres) by the Finnish Association for Nature Conservation’s count.

Hanna Halmeenpaa, the association’s chair, said satellite images cited by Finnish newspaper Kaleva show that protected nature sites were among the areas logged, a claim Google disputes. A Google spokesperson, Sondre Ronander, said the logging on company-owned land was done “in full accordance with the requirements of the Forestry Act,” while separately acknowledging the company had “fallen short of our own high standards in this instance.”

SiteForest clearedStatus
MuhosAbout 330 hectaresWork ordered halted; EIA pending
KajaaniAbout 200 hectaresWork ordered halted; EIA pending

What Google has done since

Google said it would study LVV’s findings and follow its guidance, and pointed to a planned 130-hectare (53-acre) tree-planting program at Muhos as part of its landscaping and biodiversity commitments for the project. As of October 26, neither LVV nor Google has publicly confirmed whether the October 23 suspension deadline was met; LVV had said non-compliance could lead to enforcement proceedings and a possible fine.

The Finnish investment, announced in September, is Google’s single largest in Europe and includes a 22-year deal to buy up to half the output of the Loviisa nuclear plant, a commitment that extends the plant’s operating life to 2050 from a previously planned 2030 shutdown.

Why Finland is drawing AI data center investment

The Nordic region has drawn large data center commitments in part because of its cool climate, low-carbon electricity supply, and reliable power grid, factors that reduce both cooling costs and the carbon footprint companies have to report. Google’s September announcement framed the 13 billion euro commitment, spread across sites in Muhos, Vaala, Kajaani and Hamina, as its biggest single investment in Europe.

How Finnish politicians have reacted

Centre Party leader Antti Kaikkonen said Finland needs to secure enough electricity generation and transmission capacity to support new data centers before approving more projects at this scale. Opposition parties called last month for a national permit system aimed at preventing power shortages and rising energy prices as AI infrastructure investment grows.

The governing Social Democratic Party has said it welcomes the investment and the jobs it brings, while flagging the same concern about rising power demand. That tension, over welcoming foreign investment while managing its environmental and grid impact, is the backdrop against which LVV’s halt order landed.

What locals are reporting

Beyond the regulatory dispute, outlets including Kotaku reported this week that a Kajaani-area resident told a wildlife displacement story tied to the forest clearing, saying wolves had moved closer to her village after losing forest cover, though she added that the animals were later scared off. That account comes from a single local resident and has not been independently verified by wildlife authorities, so it should be read as an early, unconfirmed report rather than a documented environmental effect.

What happens next

LVV’s enforcement decision, and whether Tuike Finland met the October 23 suspension deadline, will determine if Google faces a formal fine on top of the construction delay. The separate police preliminary investigation into the Muhos clearing is still open.

FAQ

Has Google’s Finland data center investment been canceled?
No. LVV’s order halts preparatory site work at Muhos and Kajaani until environmental impact assessments are completed; it does not cancel Google’s broader 13 billion euro Finnish investment, which also covers sites at Vaala and Hamina.

Why does the environmental impact assessment matter here?
Finnish law requires the assessment before work that significantly alters the environment, such as large-scale forest clearing, begins. LVV says Tuike Finland carried out that work at both sites before the assessments were done, which is what triggered the halt order and the separate police inquiry into the Muhos site.

Source: Al Jazeera, citing the Finnish Licensing and Supervision Agency (LVV); Yle News.