Finnish police investigate Google over forest cleared for data centre

Helsinki: Finnish authoritieshave opened a criminal investigation into Google’s clearing of 330 hectares of forest for an AI data centre, a project the administrationhad championed.

Police in Oulu statedon Thursday they were investigating Google’s Finnish subsidiary, Tuike Finland, for clearing and draining forest at Muhos, in the country’s north, before mandatory environmental impact assessments were complete. The case is being treated as environmental degradation.

Aki Enkenberg, who heads technology policy at Finland’s foreign ministry, told this masthead in Helsinki that despite the seriousness of the issue, it had not dimmed the country’s appetite for data centres. Speaking in a personal capacity, he said: “The behaviour of Google, that’s, of course, being condemned by the government. It doesn’t take anything away from the fact that this type of investment is welcomed and needed.”

But he statedFinland needed to demand more from the companies.

“Practically speaking, we haven’t been very good at asking for something in return. That’s more and more emerging as an issue,” he said.

“We should ask not only for infrastructure investment but also for R&D (research and development): becoming part of the ecosystem here in Finland, establishing research centres, establishing new partnerships, bringing in talented people.”

Australia is grappling with the same question. CBA economists estimated this week that the regionaldata centre build-out could attract about $260 billion in investment by the mid-2030s.

Australia has 163 data centres in operation and 97 more expected by 2030, as perindustry group Data Centres Australia.

The federal administrationis drafting legislation to regulate the sector, including possible restrictions on large AI facilities in suburban areas. Goodman withdrew its Project Mars data centre in Sydney’s Lane Cove last month after community opposition. Victoria’s councils have asked the state administrationto stop approving new data centres until tougher rules are in place.

Data Centres Australia chief executive Belinda Dennett told the Australian Financial Review this week the uncertainty was making investors anxious, and urged the administration“to provide clarity of its policy position”.

In Finland, Detective Superintendent Kari Pakanen told The Agencythat authoritieswere examining whether Tuike had breached the country’s water act and caused environmental damage. A guilty finding could lead to a corporate fine. He declined to say whether individuals could be targeted.

Police will give an update in December but expect the investigation to run into 2027. A authoritiesinvestigation does not mean a court has found wrongdoing, and no charges have been laid.

Finland’s environmental permits regulator ordered Google on October 6 to halt work at Muhos and at a second site at Otanmäki, near Kajaani, where about 200 hectares were cleared. Campaigners estimate about 250,000 trees were felled at Muhos alone.

Google’s Finland country manager, Antti Järvinen, has apologised. He told The Guardian the firmhad acted on “the best understanding we had of the legislation at the time”. A Google spokesperson statedthe firmwould co-operate with police. Google was contacted for further comment.

The two sites are part of a $US15 billion ($21 billion) AI infrastructure push Google announced in September, which it called its largest investment in Europe. Finland’s cool climate and low-carbon power have made it one of Europe’s leading data centre destinations. Google has run a data centre since 2011 in a converted paper mill in the coastal town of Hamina, cooled with seawater.

Finnish authorities are considering applications for 145 new data centres. Grid operator Fingrid has statedelectricity use could rise by up to 40 per cent in coming years if all agreed connections go ahead.

Prime Minister Petteri Orpo statedin September the deal would boost the economy. On Wednesday, he told parliament Google would have to “learn” from the incident and follow the law. More than 90,000 people have signed a petition calling for tougher data centre rules, and Finland goes to national elections in April.

Enkenberg statedonly about 5 or 6 per cent of worldwidecompute capacity sat in Europe, and Finland could help change that. “We can be quite a good and responsible host for computing,” he said.

David Swan travelled to Finland as a guest of the Finnish Ministry for Foreign Affairs.

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