Finland Orders Google to Halt Data Center Site Work After Tree Clearing

Finnish regulators have ordered Google to suspend all environmentally significant preparatory work at two data center sites in Muhos and Kajaani. The order follows the clearing of an estimated 250,000 trees at the Muhos site, a move that sparked public uproar in Finland.

The Finnish Licensing and Supervision Authority issued the partial stop-work notice to Tuike Finland, Google's local subsidiary. The suspension holds until the required environmental impact assessments (EIA) for both projects are finished.

What happened at Muhos?

Earlier this month, The Guardian reported that nearly 330 hectares (815 acres) of forest near Muhos, a rural town in northern Finland, were felled. The report contended that the company had illegally stripped the entire area to build a data center. Forestry work had started months before the assessment process was complete.

Tommi Muilu, Head of the Environmental Department at the agency, said the order was a direct response to Google's actions in Muhos.

"In the opinion of the Finnish Licensing and Supervision Authority, extensive preparatory measures have already been taken in the project areas based on the currently available reports, such as the removal of trees, the stripping of topsoil, the construction of construction site roads and storage areas, changes to ditches and culverts, and stormwater arrangements," Muilu said.

"In our opinion, the measures in question will change the environment and cause impacts, the identification and assessment of which are among the key objectives of the EIA procedure," he added.

What does the suspension cover?

The halt applies to work with environmental significance. It does not cover planning, measurements, soil surveys or other activities expected to have minimal local impact. That means surveying and design can continue while heavy ground work stops.

The stakes for Google are large. The company is developing three data centers in Finland under a €13 billion (about $15.1 billion) investment in Finnish AI infrastructure, announced in September. Muhos and Kajaani form part of that program. Google already operates one data center in Hamina.

If Tuike Finland does not comply with the notices, the authority will consider administrative enforcement proceedings under either applicable special legislation or the EIA Act.

What does Google say?

Michiel Sallaets, Google's communications manager, denied any illegal forestry activity in a statement sent to the Finnish news agency STT earlier this month. He said the logging took place on land owned by Google "in full accordance with the requirements of the Forestry Act." Sallaets added that all potential profits from selective logging will be donated to local projects. DCD has contacted Google for further comment.

A growing land portfolio

Google's Finnish land holdings have expanded quickly. In 2024, the company acquired 1,400 hectares in Kajaani and Muhos from Metsähallitus, the state-run forest agency, without detailing plans for the sites. In February this year, it added 900 hectares in Vaala for a possible data center project. It remains unclear how the stop-work order will affect the construction timelines.

The order lands at an awkward moment for the hyperscaler. Large operators have sought to burnish sustainability credentials by backing reforestation programs. Just last week, Google signed a 320,000 ton carbon removal deal with agroforestry firm Working Trees through the Symbiosis Coalition, a carbon purchasing alliance.

For now, the question is procedural rather than existential: whether preparatory work can resume, and when, depends on the pace of the pending environmental reviews at both sites.