Tech giant Google has signed a long-term Power Purchase Agreement (PPA) with Finnish energy company Fortum, securing up to 50% of the Loviisa nuclear power plant’s capacity and providing critical financial certainty for the plant’s life extension and power uprate investments through 2050.
The PPA between Fortum and Google will commence in 2028 with a reduced capacity allocation, scaling up to cover 50% of the Loviisa plant’s output during the years 2030 through 2049. The deal is structured to span the life extension period of the Loviisa facility and is expected to generate a predictable revenue stream that will enable Fortum to complete the substantial investments required to keep the plant operational well into the next decade.
The agreement also opens the door to a new 10 MWe capacity increase at the plant. Loviisa already has a 38 MWe capacity increase currently under way, which is expected to reach completion in 2028.
About the Loviisa Nuclear Power Plant
Loviisa, located in southern Finland, comprises two VVER-440 type pressurised water reactors and holds the distinction of being Finland’s first nuclear power plant. Unit 1 entered commercial operation in 1977, followed by Unit 2 in 1981. Together, the two units currently supply more than 10% of Finland’s total electricity.
In February 2023, the Finnish government granted Fortum an extension to the operating licence for both units, permitting the plant to continue generating power through the end of 2050. Fortum has since launched an investment programme of approximately EUR 1 billion aimed at extending Loviisa’s operational life to meet that deadline.
At present, around 80% of the projects needed for the service life extension — representing approximately EUR 700 million in investments — still lack a final investment decision. Fortum has stated clearly that without these investments, the plant would not be able to continue producing fossil-free electricity beyond 2030.
“Without significant investments in its lifetime extension, the plant would not be able to continue producing fossil-free electricity after 2030,” Fortum said. “Keeping it in operation for the coming decades will help stabilise electricity prices and support the long-term resilience of the Finnish electricity grid.”
Google’s EUR 13 Billion Finland Investment
The nuclear power deal comes alongside Google’s announcement of plans to invest EUR 13 billion (approximately USD 15 billion) in data centres and supporting infrastructure across Finland over the next two years, spanning 2027 and 2028. The investment includes partnerships in Hamina, Muhos, Vaala, and Kajaani.
Fortum CEO Markus Rauramo commented on the broader significance of the agreement: “Finland has a unique opportunity to build the next wave of sustainable growth and industrialisation from its low-carbon and reliable electricity system. A key enabler for this growth are long-term partnerships, such as the one we have sealed today between Fortum and Google. The importance of partnerships is highlighted in the current uncertain market environment, characterised by low visibility and highly volatile electricity prices. They bring the predictability required for investments in new, low-carbon electricity generation capacity, strengthening energy security, and digital and industrial infrastructure, and create jobs, innovation and prosperity for Finland. In addition, our collaboration with Google creates a strong foundation for the continued development and reliable operation of our Loviisa power plant in the coming decades.”
Google’s Position on Clean Energy in Finland
Google confirmed its commitment to supporting the plant’s continued role in Finland’s energy landscape: “Keeping this clean energy asset online will help to safeguard access to reliable, affordable electricity for Finland’s households, businesses, and industrial users alike. We’ll also work with Fortum to identify potential opportunities to develop new nuclear reactors at Loviisa.”
Aris Karcanias, Head of Energy, EMEA at Google, elaborated on the company’s approach: “We are proud to have called Finland home for the past 15 years. As we expand our operations in Finland, it is critical that we work with local energy partners like Fortum to increase our understanding of what the grid needs and invest in energy solutions that deliver long-term resilience and affordability for all electricity users. By supporting the extension of the Loviisa power plant’s lifespan, we are doing our part to preserve a critical energy source in the electricity grid. The plant is located close to our Hamina data centre, where we established roots when we came to Finland. As we grow, we are working with Fortum and other partners to bring new renewable energy generation capacity and flexible solutions to the Finnish electricity system. Our goal is to be a pioneer in how AI is responsibly integrated into European energy systems.”
Beyond the power purchase agreement, Google and Fortum have also signed a Memorandum of Understanding (MoU) to deepen collaboration in support of the growth of both companies in Finland and to bring additional electricity generation capacity to the country. The MoU focuses on the development of new nuclear power, renewable energy, and flexible energy solutions. Its stated aim is to ensure that as demand for AI services grows, new low-carbon generation is deployed to support the long-term electricity supply of Finnish consumers and businesses.
In a further step, the two companies have signed a Letter of Intent to promote new power generation and flexible capacity within Finland. As an initial measure under this arrangement, Fortum has signed an agreement with Google to optimise the battery storage system to be installed at Google’s Kajaani data centre. The new battery system carries a capacity of 94 MW, and Google has agreed to deliver it through a subcontractor.
New Nuclear Development Under Consideration
Fortum noted in its study on new nuclear power that potential investments in new nuclear capacity and long-term financial viability require strong customer demand secured by power purchase agreements, strategic investors and partners, an efficient financing and risk-sharing model, and robust project implementation.
“Google and Fortum are investigating business models that could improve the competitiveness of the new nuclear power project in Loviisa. In addition, the companies are investigating the suitability of Fortum’s land areas with network connections for Google’s future data centre needs,” Fortum said.
This clean energy Finland partnership represents a convergence of growing digital infrastructure demands and the need for reliable, low-carbon electricity generation, with the Fortum Loviisa facility positioned at the centre of that alignment.