Finland orders Google's Tuike Finland to halt land clearing at its Muhos and Kajaani data-center sites until environmental assessments are done

What happened

On Oct 6, 2026 Finland's Permit and Supervision Agency (Lupa- ja valvontavirasto, LVV) published a call to suspend work, addressed to Tuike Finland Oy, the Google subsidiary developing both projects. Since Jan 1, 2026 LVV has been the coordinating authority for environmental impact assessments (EIAs, "YVA" in Finnish). Tuike must stop "immediately and no later than 23.10.2026" all preparatory work that significantly alters the environment at its planned data centers in Muhos (North Ostrobothnia) and Kajaani-Otanmäki (Kainuu), until both projects' EIA procedures are complete. Both procedures have been running since summer 2025. Tommi Muilu, head of LVV's environment department, said that large-scale preparatory work had already been done, including tree removal, topsoil stripping, site roads and storage areas, changes to ditches and culverts, and stormwater arrangements. In his words, these measures "will change the environment and cause impacts, the identification and assessment of which are among the key objectives of the EIA procedure" (CNBC's translation).

The notices rely on reports that LVV requested on Sept 18 from Tuike, the municipality of Muhos and the city of Kajaani. In its Sept 25 reply, Tuike said it had removed topsoil, prepared site roads and temporary storage areas, improved ditches and culverts for stormwater, and built (at Kajaani, was building) stormwater retention ponds. The felled and prepared area was about 330 ha at Muhos and just under 200 ha at Kajaani-Otanmäki. Tuike argued that no permit was needed: the work had started under section 109 of the Building Act, forest-use notifications were filed under the Forest Act, and the most valuable nature zones were being protected. Tuike must reply in writing by Oct 14 and state whether it will comply. If it does not comply, LVV may issue a binding order backed by a conditional fine, although its stated first aim is voluntary correction. Sari Myllyoja, head of LVV's communities and infrastructure unit, told Yle the following:

• The call is "very exceptional".
• It was based on the parties' reports and on drone images published in the media.
• LVV had not yet visited the sites.
• It could take several months before Google can resume the halted work.

Google answered the same day. "We understand the concerns and have fallen short of our own high standards in this instance," a spokesperson told CNBC, adding that Google would follow LVV's guidance. Sondre Ronander, Google's communications head for Finland and Norway, told Yle that the company acted in good faith under the Forest Act, carried out nature surveys and protected valuable sites. He said Google will plant trees across 130 ha at Muhos.

Background:

• In November 2024 Google bought about 1,400 ha of state land in Muhos and Kajaani from Metsähallitus, for an estimated €27M (Yle).
• On Sept 9, 2026 it announced a further €13bn investment in Finland over two years (Yle). The money covers data centers in Kajaani, Muhos and Vaala, an expansion at Hamina, and a power deal for up to half the output of the Loviisa nuclear plant. Google called it its largest single investment in Europe.
• On Sept 17 the Finnish Association for Nature Conservation told the STT news agency that it suspected illegal logging at both sites and asked LVV to halt the Muhos works. STT noted that under Finnish law, permanent land-use-change fellings of more than 200 ha need an EIA before they are carried out. Google denied breaking the law at the time, saying the trees were felled in line with the Forest Act (STT via Kaleva).

Local leaders accepted the decision (Yle). Kajaani city manager Terho Savolainen said it delays the project but does not change its basis. Muhos municipal manager Kimmo Hinno said he did not think Google broke the law knowingly, and called a full Google withdrawal "quite a nightmare". The zoning plans for both sites have been approved, but both are under appeal at the administrative court.

Why it matters

Finland has become a key European data-center location, and CNBC notes it has been dubbed the "Texas of Europe" for its available land and power. This case shows that environmental procedure, not only chips and electricity, can slow hyperscale AI capacity. In particular, it raises the question of whether large-scale "preparatory" forest clearing may run ahead of an unfinished EIA. An LVV unit head called the move very exceptional. The next steps are Tuike's Oct 14 reply, the Oct 23 stop deadline, and whether LVV escalates to a binding order with a fine.

Changelog

• 2026-10-07: created (sweep; Techmeme/CNBC). Facts checked against LVV's press release and both site notices (PDF), Yle, STT/Kaleva and CNBC