TLDR
- Fortum stock jumped 10% after signing a 22-year power purchase agreement with Google
- The deal covers up to 50% of the capacity at Fortum’s Loviisa nuclear power plant through 2049
- Google will invest at least €13 billion ($15.1 billion) in AI infrastructure in Finland in 2027-2028
- This is Google’s first nuclear energy deal outside the United States
- The deal allows Fortum to extend Loviisa’s life through 2050, keeping it viable beyond 2030
Fortum stock jumped 10% on Tuesday after the Finnish energy company signed a landmark 22-year power purchase agreement with Google, one of the biggest energy deals in European tech history.
The agreement covers up to 50% of the output from Fortum’s Loviisa nuclear power plant, located near Google’s existing Hamina data center in Finland. Google will buy that capacity from 2030 through 2049.
Fortum said the plant, which employs around 580 people and supplies roughly 10% of Finland’s electricity, would not have been able to keep running past 2030 without this deal. The contract provides the economic certainty needed to fund a life-extension and upgrade program that will keep Loviisa operational through 2050.
Fortum said the agreement is expected to lift its group comparable return on net assets by approximately 1.4 percentage points over time.
By mid-morning European trading, Fortum stock was up 8.3% at 23.11 euros, well ahead of the Helsinki benchmark index, which gained 1.4%.
Google’s Biggest European Investment Yet
Google described the Finland deal as its largest investment in Europe to date. Alphabet has increased its total global investment target this year to between $195 billion and $205 billion.
The €13 billion commitment covers data centers, electricity grid upgrades, clean energy projects and battery infrastructure across four Finnish cities: Hamina, Kajaani, Muhos and Vaala. Google said the investment is expected to contribute around $3.6 billion to Finland’s GDP during construction and support roughly 7,000 jobs annually once operational.
Google Chief Investment Officer Ruth Porat, speaking to reporters in Helsinki, called the Fortum deal “a really important cornerstone” to everything the company is doing in the region.
Finland’s Prime Minister Petteri Orpo welcomed the investment, saying it was “a clear testament to our strengths.”
Why Finland?
Finland offers two key advantages for data center operators: abundant low-carbon nuclear power and a cold climate that cuts cooling costs.
Google, Microsoft and ByteDance have all been looking at Nordic locations as they race to expand computing capacity while managing energy costs and hitting climate goals.
Beyond the power purchase deal, the two companies also signed a memorandum of understanding to explore new nuclear, renewable and flexibility capacity in Finland, along with energy portfolio management services. The agreement is structured so that as AI demand grows, additional low-carbon energy can be deployed to protect supply for Finnish households and businesses.
Google will also allocate €31 million over four years to community initiatives in education and economic development across the four data center locations, including €10 million earmarked for research and innovation.
This is Google’s first nuclear energy contract signed outside the United States.
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