Nokia, Elisa gain as Google Cloud pumps €13bn into Finland

• Google Cloud is to invest heavily in digital infrastructure in Finland in the next couple of years
• It will spend ‘at least’ €13bn on datacentre and supporting infrastructure, its largest ever single investment in Europe 
• Nokia and network operator Elisa will be among the beneficiaries

Here’s a reminder of why the current boom in AI infrastructure spending by any kind of investor – hyperscaler, telco, enterprise – is set to have a positive impact on the business prospects of multiple sections of the telecom sector. 

Google Cloud has announced plans to invest “at least” €13bn in “digital infrastructure” – datacentre facilities, supporting infrastructure and partnerships – in Finland over the next two years (2027 and 2028), its largest ever single investment in Europe. The hyperscaler, which has been running facilities in Finland for more than 15 years, is also “supporting clean energy projects and dedicated nature and community funds to support local biodiversity, education, research and workforce development”, no doubt, at least in part, to help counter any anti-datacentre sentiment. 

And it’s doing a good job in gaining vocal support from the Finnish government with such efforts, which include meaningful support for green energy initiatives, municipal energy projects and national biodiversity plans, in addition to creating jobs across multiple sectors.

Sari Multala, minister of climate and the environment for Finland, stated: “These investments are very welcome in Finland and demonstrate that it is possible to invest in AI infrastructure in a way that benefits both local communities and the broader energy system, including other energy users. This long-term approach and commitment are exactly what we need to generate value for both investors and Finnish society. A long-term agreement with an energy company helps ensure that new electricity generation capacity is developed to meet growing demand.”

The development over the past 15-plus years of Google’s initial facility in the country – a datacentre built on the site of a former paper mill in Hamina on the country’s south coast (east of Helsinki) – shows how such investments provide opportunities for telecom and networking firms as well as those in other supporting sectors. Google notes that during the period from 2023 to 2025 alone, its presence in Hamina “supported an ecosystem of more than 600 Finnish suppliers across construction, operations and network infrastructure – including DNA, Elisa and Nokia – that has created a multiplier effect for the economy.”  

The new construction, which will take place in Hamina (in the south) and Kajaani, Muhos and Vaala (all in the north of the country), is set to support 16,000 construction jobs during the initial two-year period and, once operational, the sites are set to support about 7,000 jobs. Google says it “continues to actively invest in additional clean energy, grid resilience and community energy programmes” and has announced a number of local energy partnerships, with the likes of Fingrid and Business Finland (to identify locations for Google’s infrastructure and grid friendly connections) and investments to strengthen the Finnish grid and “create a new blueprint for growing responsibly”.

Asta Sihvonen-Punkka, Fingrid’s president and CEO, noted: “We welcome Google’s new projects in Muhos, Kajaani and Vaala where they can grow as there is significant grid capacity for electricity consumption in the production-dominated north. Our aim is to keep the costs of the growing electricity system competitive, while reducing environmental impacts, and these locations at strong grid points both help the whole electricity system and ensure cost-effective network development.” 

Meanwhile, the expansion of the facilities in Hamina, states Google, will help Finnish companies, such as Nokia and Elisa as well as the City of Hamina, “to deliver high-performance, low-latency services and to build and scale their own AI-powered solutions.”

Elisa noted in its own short announcement that it is “deepening its partnership with Google by providing connectivity for the company’s new datacentres in Finland. The collaboration builds on the companies’ long-standing partnership in autonomous networks, cloud services and connectivity for Google’s Hamina datacentre,” though the operator didn’t provide any fiscal value to the expanded relationship.

Topi Manner, CEO of Elisa, stated: “Reliable, high-capacity connections will strengthen Finland’s digital infrastructure and security of supply while supporting local businesses and communities. Beyond creating jobs and investment, this project will help accelerate Finland’s AI ambitions by enabling low-latency access to AI and cloud services in a domestic operating environment.”

For Nokia, providing the networking technology to support such investments sits right at the heart of its ‘AI supercycle’ strategy. The vendor’s president and CEO Justin Hotard noted: “Every AI token is a network moment. Billions of agents, devices and people act on intelligence in real time, and every one of those moments depends on a network that is fast, secure and always on. Nokia builds those networks. And with Google we’re co-innovating to deliver optical and IP networks that move intelligence faster, farther and securely. Google is investing to create that future in Finland and we are proud to help them connect it to the world.” 

Like Elisa, there was no indication from Nokia about what impact this engagement might have on its top line over the next few years and, of course, this action is on its doorstep, so it was always at the front of the line to pick up this business. But Nokia has such engagements on a global basis and its focus under Hotard’s leadership is paying off, as its most recent financial results showed. This won’t be the last time the vendor is at the heart of a major AI infrastructure deployment. 

- Ray Le Maistre, Editorial Director, TelecomTV