Alphabet’s Google will invest at least €13 billion ($15.1 billion) in artificial intelligence infrastructure in Finland over the next two years, it said on Wednesday, calling it the company’s single largest investment in Europe.

Finland has become a magnet for data centres as companies including Microsoft and TikTok owner ByteDance seek to reduce energy costs and meet climate goals.

Its cold climate makes coping with the heat produced by data centres cheaper and it also has large amounts of low-carbon electricity.

Alphabet this year increased its global investment to between $195 billion and $205 billion as it seeks to capture growing computing demand.

The investments in Finland will include data centres, electricity grid improvements and clean energy and battery projects driving services such as Gemini, Search, Maps and YouTube, Google said in a statement.

“The new digital infrastructure will serve as building blocks for Finnish and broader European digital readiness, innovation, and AI development,” the company said.

The investment, to be undertaken in 2027 and 2028, will contribute some $3.6 billion to Finland’s gross domestic product during the construction phase, and is projected to support some 7,000 jobs annually once operational, Google said.

Finland’s Prime Minister Petteri Orpo said in a statement Google’s decision was “a clear testament to our strengths”.

“The value of the data economy extends far beyond direct investment into spurring innovation, research, and development,” he added.

Google’s parent company, Alphabet, has dramatically accelerated its capital expenditures to build out AI capacity, driving global investment totals up into the hundreds of billions of dollars.

This spending surge is focused on constructing next-generation hyperscale data centers, scaling custom silicon like its Tensor Processing Units (TPUs), and securing the massive energy grids required to power these facilities.

Significant regional investments include multi-billion-dollar commitments across Europe, Asia, and North America—such as a recent €13 billion expansion in Finland—aimed at reducing latency and supporting local cloud infrastructure demands.

A core pillar of Google’s infrastructure strategy is vertical integration, combining proprietary custom silicon with custom-built optical switching networks and specialized cooling systems. By deploying custom TPUs alongside high-end Nvidia GPUs, Google has optimized compute efficiency to support both its internal foundation model training (such as Gemini) and third-party enterprise workloads through Google Cloud.

Furthermore, to sustain this physical footprint, Google has signed major power-purchase agreements for clean energy and advanced cooling technologies to manage the intensive operational and environmental demands of next-generation AI clusters.