Outcry as Forest Is Cleared for Giant Data Centre Project
Jakarta, CNBC Indonesia – Finnish police have formally opened a criminal investigation into suspected environmental law violations at the site of a giant data centre being built by Google in northern Finland.
The data centre project is part of a US$15 billion (about Rp272 trillion) artificial intelligence (AI) investment plan announced by the Alphabet subsidiary last month. Google described the commitment as its largest investment in Europe.
Local authorities said Tuike Finland, a Google subsidiary, was suspected of clearing forest and draining land at the project site near the town of Muhos. The work was allegedly carried out before the environmental impact assessment documents required under Finnish law had been completed.
In response to the legal action, a Google spokesperson said the company was committed to co-operating and complying with all ongoing legal processes.
“We have worked closely with the government and people of Finland for more than a decade. We are actively responding to all requests for information from the relevant authorities,” the spokesperson said, according to Reuters on Friday (30 October 2026).
Police probe water management violations
Finnish police Detective Inspector Kari Pakanen said the investigation was currently focused on the water management system at the project site.
“We are investigating whether the company’s operations have violated water legislation and caused environmental damage,” Pakanen told Reuters.
He added that, if found guilty in court, the Google subsidiary could face a corporate fine. Pakanen declined to say whether any individuals or executives were also being investigated as suspects.
Initial police findings pointed to significant confusion and negligence in the drainage and water management system at Tuike’s site. Police are due to provide an update in December, although the investigation is expected to continue into 2027.
On 6 October, Finland’s Environmental Supervisory Agency (LVV) had ordered a temporary halt to all physical work that altered the landscape in Muhos and at another project site.
The LVV said it could not yet determine when permits allowing the projects to resume might be issued.
Competition for energy and electricity tariff risks
Finland has recently become a major draw for global data-centre investment. Its cold climate, access to low-carbon electricity and government support for green initiatives have made the Nordic country a favoured hub for AI infrastructure.
Public opposition to data-centre projects in Finland has been relatively limited compared with some other European countries and the United States, despite the country’s large area and population of fewer than six million.
However, the wave of AI data-centre projects is projected to increase Finland’s national electricity consumption by as much as 40% in the coming years, according to estimates by national grid operator Fingrid.
Google’s investment commitments in Finland extend beyond data centres to upgrades to the electricity grid, clean-energy projects and battery facilities, supporting its digital services ecosystem, including Gemini, Google Search, Maps and YouTube.
Finnish Prime Minister Petteri Orpo previously welcomed Google’s major investment, saying it could boost national economic growth. Orpo also sought to allay public concerns that the influx of data centres would strain the country’s energy supply and drive up electricity prices for local residents.