Google, Alibaba, and Applied Digital jointly investing approximately $75 billion in a new AI data center rush in Finland, significantly expanding available computing capacity across multiple cloud operators.
Finland's data center boom is accelerating, with planned and ongoing investments now exceeding €67 billion ($75 billion). Alphabet Inc., Alibaba Group Holding Limited, and Applied Digital Corporation are among the companies expanding into the country, drawn by its cool climate, low-carbon electricity, and available power grid connections. The investment rush is also raising concerns about electricity costs and the potential for new regulations that could affect project timelines.
The latest announcement came from French AI infrastructure company Sesterce SAS, which plans to invest more than €10 billion in a data center campus at the former Kaipola paper mill in Jämsä. The project is designed to eventually support more than 1 gigawatt of capacity, making it one of the larger developments proposed in the country.
Applied Digital, a U.S.-based developer of data centers for AI and high-performance computing, has also announced plans for a Finnish campus that could scale to 1 gigawatt. The company has not disclosed the investment's value, leaving investors without a clear estimate of its potential financial commitment.
Applied's announcements followed Google's €13 billion investment plan in Finland, described as the company's largest-ever European investment. Nordic data center operator atNorth is also planning a facility in Salo with capacity of up to 230 megawatts.
Alibaba has outlined plans for additional European data centers, including in Finland, as part of a broader international expansion. The Chinese technology company is targeting 20 gigawatts of global data center capacity by 2032.
Finland holds several advantages for operators building power-hungry AI infrastructure. Its relatively cool weather reduces cooling needs, while low-carbon electricity and former industrial sites with existing grid connections make it attractive for large-scale development.
Yet the rapid expansion is starting to face resistance. Finnish authorities have ordered Google to suspend preparatory work at its planned campuses in Muhos and Kajaani until an environmental impact assessment is completed. The order prevents further woodland clearing and other activities that could affect the surrounding environment.
Electricity supply is another growing concern. Finland's government is preparing legislation that would allow authorities to review data center projects before granting grid connections, replacing the current first-come, first-served system. A separate proposal would require data center operators to register. Finnish lawmakers broadly agree that the sector needs stronger oversight, though the proposed rules have not yet taken effect. The debate reflects concerns that large data centers could put pressure on electricity availability and prices, particularly for households.