The Finnish government has granted Metsähallitus a permission to sell four parcels of land in the municipalities of Muhos and Kajaani. The land is sold to Google for future expansions of its cloud and data center infrastructure in Finland. The total value of the transaction is over EUR 27 million, with the combined areas covering approximately 1,400 hectares. The areas are part of the assets of Metsähallitus used for its business activities and they have mostly been in commercial forestry use.
Google has been operating data centers in Finland since 2011, creating several thousands of direct and indirect jobs during construction. The Google data center campus in Hamina employs approximately 400 people full-time at present. The impact of the potential expansion on employment is estimated to be significant, both directly and indirectly. The growing economic activity is anticipated to have a positive effect on other services offered locally as well as the housing market.
“I’m very pleased about the announcement of Google. This deal forms a foundation for any potential future investments and sends a clear message that Finland is an attractive and safe country for investments. The goal of the reforms introduced by the Government is for Finland to become an even more sought-after destination for investments and the hard work is taking us closer to that target,” says Prime Minister Petteri Orpo.
One of the business activities of Metsähallitus is the commercial utilisation of state assets assigned to it. For this purpose, Metsähallitus sells and rents land and water areas. However, land sales of this size do not take place very often in Finland.
“The business expertise of Metsähallitus for responsibly managing and making use of state lands has been essential in accomplishing this sale of real estate, which carries a lot of importance for the economy both nationally and regionally. The sale and the potential investment it enables will play a significant role in helping the region fully exploit its potential in terms of economic growth, regional vitality, investments, competence development and the availability of labour in accordance with the Government’s programmes for northern and eastern Finland,” says Minister of Agriculture and Forestry Sari Essayah.
State areas can promote green growth
“For more than a decade, Finland has been home for our Google data center in Hamina, and we’re dedicated to supporting the country’s growing digital ambitions. Even before a final investment decision is made for the development of the sites in Kajaani and Muhos, we are working in close consultation with local and national stakeholders on a plan that supports the long-term health of the community’s economy and natural resources. This is the first step in a long process”, adds Antti Järvinen, Country Director Google Finland.
A permit granted by the Government to sell land areas is based on the Act on the Right to Transfer State Real Estate Assets (the Transfer Act), and the real estate sale between Metsähallitus and Google is a contract governed by private law. Metsähallitus sells the land to Google as raw land.
Use of the areas for the planned purpose will require statutory land use planning. Google will make a decision on the use of the land areas based on the framework conditions of the land use planning and permit processes. Metsähallitus will not participate in the project development or business and production activities planned for the areas. Metsähallitus has requested statements concerning the areas from the Ministry of the Environment, the Finnish Heritage Agency, the Ministry of Defence and the Ministry of the Interior as required by the Transfer Act. According to the obtained statements, there were no impediments to the transfer.
“Metsähallitus promotes green growth by providing sites for green transition projects. This requires balancing economic, environmental, and social sustainability perspectives, as well as extensive cooperation with various stakeholders. The land sale for Google’s potential data center investment is an excellent example of how state-owned areas can be used as engines for green growth, while creating jobs and positive regional impacts. We warmly welcome Google to expand its operations in Finland and look forward to further collaboration in developing these areas”, says Juha S. Niemelä, Director General of Metsähallitus.