- Google signs long-term power purchase agreement with Fortum to secure Loviisa nuclear plant operation.
- The agreement covers up to 50% of Loviisa's capacity.
- Fortum is undertaking a €1 billion investment program to extend the plant's lifetime.
- The partnership aims to support data center expansion and low-carbon power needs.
Google has signed a long-term power purchase agreement with Finnish energy company Fortum to ensure it receives electricity from the Loviisa nuclear power plant until the middle of the century, providing financial support for the facility's planned lifetime extension. The agreement covers up to 50% of Loviisa's capacity and comes as Google prepares to invest €1.3 billion (approximately HK$11.7 billion) in data centers and related infrastructure between 2027 and 2028. The power purchase agreement will begin with reduced capacity in 2028 and will cover 50% of the plant's output from 2030 to 2049.
Loviisa Nuclear Plant Lifetime Extension
Regarding the lifetime extension of Loviisa, the nuclear plant has two VVER-440 pressurized water reactors. The first unit began commercial operation in 1977, and the second unit was commissioned in 1981. The plant currently supplies over 10% of Finland's electricity. In 2023, the Finnish government extended the operating licenses of Fortum's two reactors until the end of 2050. Fortum is now undertaking an investment program of approximately €1 billion (approximately HK$8.7 billion) to extend the plant's operating lifetime.
The company stated that about 80% of the projects needed for the lifetime extension, representing about €700 million (approximately HK$6.1 billion), still lack investment decisions.
Google's Data Center Expansion Plans
According to World Nuclear News, the agreement with Google aims to provide a predictable revenue stream to support these investments. The deal also supports additional generation capacity at Loviisa. Work has already begun on a 38 MWe capacity enhancement, expected to be completed by 2028, and the agreement is expected to facilitate another 10 MWe enhancement. Fortum said keeping the reactors running for decades will help maintain fossil-free power generation while supporting the resilience of Finland's power grid.
The agreement comes as Google expands its infrastructure in Finland, including its data center in Hamina. Google said maintaining nuclear power at Loviisa will help keep reliable and affordable electricity available for households, businesses, and industry in Finland. The company also said it will work with Fortum to explore potential opportunities to build new nuclear reactors at Loviisa. The two companies have signed a memorandum of understanding covering potential cooperation in new nuclear energy, renewable energy, and power system flexibility.
This collaboration highlights the growing challenge for tech companies: expanding data centers and AI services requires a large amount of reliable electricity, and companies are increasingly seeking low-carbon sources that can provide power around the clock. Google and Fortum are also exploring flexible power solutions. As part of this effort, Fortum has agreed to optimize a 94 MW battery energy storage system planned for Google's data center in Kajaani. The two companies are also reviewing potential business models for new nuclear power generation and whether Fortum's grid-connected sites can support future Google data centers.
Fortum previously stated that new nuclear projects need to be secured with long-term power purchase agreements, strategic partnerships, appropriate financing, and risk-sharing arrangements to ensure strong customer demand. Therefore, the latest agreement is not only about ensuring Google's power supply but may also help provide the long-term commercial certainty needed to keep Finland's existing nuclear capacity running while considering how to build additional low-carbon generation capacity to meet growing electricity demand.
How Tech Companies Are Addressing Power Demand Challenges
As data centers and AI services expand, tech companies face an urgent need for reliable electricity. The partnership between Google and Fortum not only ensures power supply but also reflects the companies' emphasis on low-carbon energy. Through long-term power purchase agreements, this collaboration helps maintain the stability of nuclear power generation and supports the resilience of Finland's power grid. Additionally, exploring potential opportunities for new nuclear reactors shows that tech companies are actively addressing future electricity demand growth while seeking sustainable development.