Finnish authorities have ordered Google to temporarily halt construction activities at two datacentre sites in Muhos and Kajaani after the company failed to complete required environmental impact assessments (EIA) before beginning significant preparatory work. The technology giant’s planned €13 billion expansion across northern Finland includes these facilities intended to meet growing demand for online infrastructure space.
The Finnish Licensing and Supervision Authority (LVV) issued a notice on Tuesday directing Google’s representative company, Tuike Finland Oy, to suspend activities that cause substantial environmental changes at the sites by October 23 at the latest. This suspension will remain in place until the environmental impact assessments are finished. Google has been given until the following Wednesday to provide a written explanation for the oversight. The EIA process is currently underway and is expected to conclude later this year.
LVV officials cited extensive preparatory measures carried out at both locations, including tree felling, removal of topsoil, and road construction, which were conducted before the environmental assessments were completed. Tommi Muilu, head of LVV’s environmental department, stated that such interventions alter the environment in ways that must be fully evaluated as part of the EIA procedure. Authorities warned that failure to comply with the suspension order could lead to enforcement actions and fines.
The issue came to light after it was revealed that approximately 330 hectares (815 acres) of forest in Muhos had been cleared without completing the environmental review. In Kajaani, nearly 200 hectares (494 acres) have similarly been subject to logging. The Finnish Association for Nature Conservation criticized the company’s actions, describing the affected areas as being reduced to “sand” and attributing the problem to the overheated market for new datacentres in Finland.
Tapani Veistola, chief operating officer of the environmental group, described the logging practices at both sites as indicative of a systemic problem. He noted that the Muhos site had effectively ceased to be forest and that the rush to develop datacentres was straining local municipalities’ capacity to manage approvals effectively. According to Veistola, the rapid pace driven by high market demand leaves municipalities without sufficient expertise to oversee complex projects properly.
In response, Google acknowledged the concerns and admitted to falling short of its own environmental standards. The company said it acted in good faith under the Forestry Act, conducted nature surveys, and implemented measures to protect high-value ecological areas. It also outlined ongoing efforts to advance landscaping and biodiversity plans, including the planting of trees across 130 hectares (321 acres) at the Muhos site as part of its long-term commitment to the region. The company indicated it would review LVV’s findings and comply with regulatory guidance going forward.
