Finnish authorities are investigating whether forest clearing for Google's planned Muhos data centre breached environmental rules, putting one site in the company's at least €13 billion (approximately £11.02 billion) Finland infrastructure expansion under scrutiny.
The investigation followed a 16 September petition from the Finnish Association for Nature Conservation and its regional branch. The groups allege that more than 300 hectares were cleared before the project's environmental impact assessment was completed. They also argue that work proceeded while the site's zoning plan remained under appeal.
No authority has yet ruled that the logging was illegal.
Google and its Finnish subsidiary, Tuike Finland Oy, reject suggestions that they acted unlawfully.
The dispute emerged days after Google presented Finland as a model for responsible data-centre development and clean-energy growth, linking its expansion to low-carbon power, battery storage and nature-restoration projects.
Authority Had Said Clearing Required an Assessment
Most of the Muhos clearing took place in March and April 2026, according to Finnish environmental publication Suomen Luonto, which is published by the Finnish Association for Nature Conservation. The conservation group says the affected area exceeded 300 hectares.
Finland's environmental impact assessment law requires an assessment when more than 200 hectares of a connected area of forest, peatland or wetland nature is permanently altered, including through the permanent removal of trees.
STT reported on 28 September that Tuike Finland had asked the Finnish Licensing and Supervision Authority in April for a screening decision on whether the clearing required an environmental impact assessment.
According to correspondence reviewed by STT, the authority replied in May that a separate screening decision was unnecessary and that the normal environmental impact assessment procedure had to be followed, including because of the size of the clearing area.
Helsingin Sanomat later reported, citing satellite data, that logging continued after the authority's correspondence and into August.
The authority has requested explanations from Tuike Finland, Muhos municipality and Kajaani city as it examines the work carried out and the permits and other requirements that applied. It has not announced a final finding that the Muhos clearing was unlawful.
Google Says Its Work Was Lawful
Google and Tuike Finland deny acting unlawfully.
Tuike Finland told authorities that it had carried out a careful legal review before starting work and considered its approach fully lawful and appropriate. According to STT, the company cited both forestry and construction law.
Google has separately said trees on its land in Muhos and Kajaani were felled in accordance with Finland's Forestry Act.
That defence does not settle the wider dispute. The authority is examining questions involving environmental assessment, planning requirements and permissions applying to preparatory work.
Google's Muhos project page says the site remains in development and that activity is currently limited to preliminary infrastructure work. The company says all work is proceeding in compliance with permits already obtained.
Biodiversity Areas Were Also Cleared
Scrutiny widened after Suomen Luonto reported that four smaller areas identified as important for biodiversity were initially left standing during the main clearing but were felled in July.
The publication said Sentinel satellite images showed the areas still intact in late June.
Environmental surveys had recommended keeping two of the areas outside land-use changes, including forestry operations. The surveys recommended that the remaining two be preserved where possible.
The four sites were not statutory nature reserves, Muhos technical director Mikko Kari told Suomen Luonto.
€13BN Expansion Was Framed as Responsible Growth
On 9 September, Google announced plans to invest at least €13 billion (approximately £11.02 billion) in digital infrastructure in Finland during 2027 and 2028, describing it as the company's largest single investment in Europe.
The investment includes data centres and supporting infrastructure and partnerships in Hamina, Kajaani, Muhos and Vaala. Google says the infrastructure will help meet growing demand for services including Gemini, Search and Maps.
The company also presented Finland as a model for responsible data-centre development.
Its plans include a 22-year power purchase agreement with Fortum covering up to 50 per cent of the Loviisa nuclear power plant's generation capacity, additional onshore wind power agreements and a contracted 94-megawatt battery system near Google's Kajaani site.
Google has also pledged nature-restoration projects near its Finnish sites, including regeneration of native forests and wetlands.
Google Projects Thousands of Jobs
Google projects that its €13 billion (approximately £11.02 billion) investment will contribute an annual average of €3.6 billion (approximately £3.05 billion) to Finland's GDP during the initial construction phase in 2027 and 2028 and support more than 37,000 jobs nationwide.
Once the facilities are operational, the company estimates they will support about 7,000 jobs annually.
Those figures are projections rather than realised economic benefits, but they form a central part of Google's case for expanding its Finnish infrastructure.
The Muhos investigation presents a separate test of how that expansion is being carried out on the ground.
Finnish authorities must now determine whether preparation of the site complied with environmental assessment, planning and other requirements governing the development. Until that investigation is complete, allegations that the clearing was illegal remain unproven.
