Finnish authorities have issued a stop-work order against Google subsidiary Tuike Finland Oy, halting construction on two artificial intelligence data centers. The Finnish Licensing and Supervision Agency (LVV) determined that the projects in Muhos and Kajaani proceeded without completing mandatory environmental impact assessments.
The order specifically targets activities involving the removal of trees and topsoil. Regulators have also suspended excavation, quarrying, crushing, soil mass transfers, ditching, and the construction of roads and storage facilities at the sites. The agency cited the alleged clearing of more than 740 acres of forest as the primary reason for the intervention.
Environmental Impact Assessment Delays
Tommi Muilu, head of the environmental department at the LVV, stated in a public statement that the measures in question would significantly alter the environment. He noted that identifying and assessing these impacts is a key objective of the environmental impact assessment (EIA) procedure. The regulator emphasized that the current lack of completed assessments prevents the projects from moving forward.
While major construction is paused, the subsidiary is permitted to continue with planning, measurement, and soil surveys. These activities are considered to have minimal environmental impact and do not require the same level of regulatory scrutiny as earth-moving operations.
Google acknowledged the regulatory action and the concerns raised by authorities. A spokesperson for the company told CNBC that they understand the issues and admitted falling short of their own high standards in this instance. The company stated it acted in good faith under the Forestry Act and had conducted nature surveys to protect high-value areas. Google also highlighted its ongoing landscaping and biodiversity plans, which include planting trees across 130 hectares at the Muhos site.
Europe’s Push for AI Infrastructure
The halt of these projects occurs against a backdrop of intense competition for artificial intelligence infrastructure in Europe. Finland has attracted significant attention from tech developers due to its abundant land and electricity supply. These resources are often bottlenecks for data center operators in other regions. The country is sometimes referred to as the “Texas of Europe” for its capacity to support large-scale computing facilities.
European nations are investing heavily to catch up with the United States and China in the AI race. The continent has seen commitments of $30 billion in investments, with targets of 100,000 AI GPUs for individual sites. SoftBank has also announced an $87 billion investment plan for France, leveraging its nuclear-powered electricity grid to power data centers.
However, the rapid expansion of power-hungry infrastructure has strained national grids. Denmark recently paused new data center connection requests after demand surged to 60 gigawatts, which is eight times the country’s peak power consumption of 7 gigawatts. Amazon has faced delays of up to seven years for new connections on the continent.
The current stop-work order in Finland is distinct from the power supply issues affecting other European nations. The regulatory action stems from environmental permitting violations rather than energy capacity constraints. U.S. data center projects have also faced community resistance, with 45 projects worth $68 billion blocked in the second quarter of 2026. Europe has historically seen less high-profile opposition, largely due to stricter permitting and review processes that address concerns before construction begins.
Tuike Finland Oy must now complete the required environmental impact assessments before resuming any significant construction work. The outcome of these reviews will determine the future of the Muhos and Kajaani facilities and set a precedent for how environmental regulations are enforced in the growing European AI sector.
Source: Tom’s Hardware
