Finland opens criminal probe into Google unit over forest clearing

Finnish police have opened a criminal investigation into suspected breaches of environmental law at the site of a planned Google data centre in Muhos, in the country’s rural north, The Guardian reported on Thursday. The subject of the probe is Tuike Finland, a Google subsidiary.

In a statement issued on 29 October, police cited possible ambiguities and shortcomings in drainage and water management at the construction site, and said the investigation would examine those circumstances among other matters. Crypto Briefing reported that the Oulu police department is overseeing the case, which followed multiple complaints, and that a conclusion is expected by 2027.

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Key facts

• Tuike Finland cleared and drained 330 hectares (815 acres) of forest at the Muhos site before environmental impact assessments required under Finnish law had been completed, per The Guardian.
• Earlier in October, the Supervisory Agency ordered work halted at Muhos and at Otanmäki, roughly 100km to the south-east, telling Google to stop preparatory measures altering the environment.
• Campaigners estimate 250,000 trees were felled at Muhos and 150,000 at Otanmäki, according to The Guardian.
• Crypto Briefing reported that the Muhos figure exceeds the threshold that triggers an environmental impact assessment requirement in Finland, and that Google was given a compliance deadline of 23 October.
• The projects form part of a €13bn (£11bn) artificial intelligence infrastructure commitment that Google has described as its largest investment in Europe.

The company’s response

Google’s Finland country manager, Antti Järvinen, apologised for the forest clearings but said the company had acted on the best understanding it had of the legislation at the time. Crypto Briefing reported that Google has said it believed the required approvals were in place, and that Järvinen indicated the company would immediately follow the order to stop work while maintaining it had considered the work lawful.

The two accounts also describe the affected sites differently. The Guardian names Muhos and Otanmäki as the locations where authorities ordered work suspended and describes a roughly 200-hectare clearcut at Otanmäki. Crypto Briefing instead reports that preparatory works were halted at Muhos and Kajaani, with a compliance deadline of 23 October. Both outlets tie the plans to the wider €13bn AI infrastructure programme.

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Political pressure ahead of elections

The Finnish government had welcomed the investment. When the plans were announced in September, prime minister Petteri Orpo called attracting investment a top priority and said the deal would deliver lasting benefits. The clearances have since prompted a national argument about what data centre deals mean for communities, the environment and energy prices, and The Guardian reported the issue could affect parliamentary elections due in April.

More than 93,000 people have signed a petition calling for tighter regulation of data centres and compensation for environmental damage. Jussi Kangasharju, professor of computer science at the University of Helsinki, told The Guardian that Finland receives essentially no benefit because the facilities are run by international companies serving international customers.

Finland remains attractive to operators because of its relative geopolitical stability, available land and cool climate, which can reduce energy costs. Authorities are weighing applications for 145 new data centres at various stages of planning.

Why it matters

A police inquiry carries more weight than a permitting dispute: it can lead to charges and keeps scrutiny on how site preparation was handled. For Alphabet, the immediate exposure is timing, since preparatory work has already been suspended at multiple sites while the €13bn programme runs alongside a 22-year power purchase agreement with Fortum for nuclear power, as reported by Crypto Briefing. The scale of the commitment, and the government’s stated support for the sector, suggest the buildout continues even as the legal process unfolds.

What to watch

The investigation is expected to conclude in 2027, per Crypto Briefing. Before that, Finland’s April parliamentary elections and the fate of the 93,000-signature petition will test how far the government’s pro-investment stance survives the dispute.

This article covers a regulatory and legal investigation; it is not financial advice. Markets and individual company shares are volatile and can move unpredictably.

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StockPil Editorial

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Sources: The Guardian, Crypto Briefing