Alphabet Inc (GOOG  ) (GOOGL  ) owned Google said it will invest an additional 1 billion euros ($1.1 billion) to expand its data center campus in Finland.

This investment aims to bolster its artificial intelligence (AI) business in Europe, and underscores Google's commitment to enhancing its technological infrastructure and AI capabilities in the region.

Data centers have increasingly found homes in the Nordic countries, benefiting from the region's cooler climate, tax incentives, and ample renewable energy resources, reported Reuters.

However, neighboring countries like Sweden and Norway have started to voice concerns about hosting these energy-intensive facilities.

Industry experts suggest that these nations should prioritize renewable energy for high-value products like green steel.

Finland, in contrast, has seen a rapid expansion of its wind power capacity, growing by 75% to 5,677 megawatts in 2022.

This growth has occasionally led to negative electricity prices on windy days, indicating an excess of renewable energy.

Google's long-term contracts for wind power in Finland ensure a stable supply for its data centers, aligning with the country's renewable energy capabilities.

Analysts predict a significant rise in power consumption due to the surge in AI applications. Google cited this growing demand for AI as a key reason for its substantial investment.

The Hamina data center in Finland, which already operates with 97% carbon-free energy, exemplifies Google's commitment to sustainable practices.

The facility will also contribute to the local community by redirecting excess heat to Hamina's district heating network, benefiting households, schools, and public buildings.

Google has set an ambitious target to achieve net zero emissions across all its operations and value chain by 2030.

The Finnish investment is part of a broader strategy, which includes recent announcements of new data centers in the Netherlands and Belgium, aimed at expanding Google's infrastructure while adhering to environmental sustainability goals.

The tech giant made several announcements around Gemini and its upcoming AI-powered features at its annual I/O developer conference.

Alphabet stock has gained more than 40% in the last 12 months. Investors can gain exposure to the stock via Communication Services Select Sector SPDR Fund (XLC  ) and Vanguard Communication Services ETF (VOX  ).

Price Action: GOOGL shares are trading higher by 1.22% at $178.19 at the last check Monday.