Experts have warned that the establishment of Google data centers in Finland could increase electricity costs for Estonians by half a cent per kilowatt-hour if neither country increases its electricity generation capacity, reports ERR News.
Google plans to invest 13 billion euros to build new data centers in Finland. It is projected that, over the next 22 years, these energy-intensive data centers will purchase half of the electricity generated by Finland’s Loviisa nuclear power plant. This means Finland will have less surplus electricity available—supply that Estonia, for instance, has previously been able to purchase at a favorable price.
Tiit Hõbejõgi, a board member of Enefit (a subsidiary of Eesti Energia), stated that this implies electricity prices in Finland will rise; consequently, when electricity is purchased from Finland, prices in Estonia will also increase. He noted that electricity consumption in Finland has risen by 500 megawatts compared to 2025 levels. While various factors contribute to this, the cost of electricity in Finland—excluding the coldest winter months—has increased by five euros per megawatt-hour, an impact that extends to Estonia.
In this scenario, the price would rise by 0.5 cents per kilowatt-hour.
However, Finland plans to expand its electricity generation capacity.
Timo Tatar, CEO of Ignitis Eesti, noted that while there will certainly be times when less surplus electricity is available in Finland, the average price will essentially remain at current levels. Market volatility could increase, and electricity prices might spike during certain hours. At the same time, increased demand will inevitably drive the construction of new power plants; consequently, there will also be periods of very low electricity prices as cheap wind energy enters the market.
In recent years, Estonia has imported 40% of its electricity consumption from Finland and other Nordic countries. Kalle Kilk, CEO of the distribution system operator Elering, stated that Estonia should not rely so heavily on surplus electricity from neighboring countries. He emphasized that if consumption rises without a corresponding increase in available electricity, both energy security and prices are affected. It is important to recognize Estonia’s significant dependence on the situation in neighboring countries; the key takeaway is that, in the future, the country must take greater responsibility for ensuring a sufficient supply of domestically produced electricity.
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