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Google Plans $184 Million Finland Data-Center Expansion

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Aug. 2 (Bloomberg) -- Google Inc., owner of the world’s most-popular search engine, plans to spend 150 million euros ($184 million) to expand its data center in Finland as demand rises for online access to video and data.

The construction work to expand the facility in Hamina, about 150 kilometers (93 miles) east of Helsinki, will last about 18 months, Google said today in a statement distributed at a media event at the site.

Google, based in Mountain View, California, needs more capacity as demand increases for data-intensive services such as its YouTube video website and Gmail. In April, the company said it will spend more than $300 million building its largest Asian data center in Taiwan, after announcing smaller centers in Hong Kong and Singapore in September.

In 2009, Google said it planned to invest an initial 160 million euros to set up the Hamina facility in a former newsprint mill -- Google’s first conversion of an existing building into a data center. The company paid 40 million euros for the coastal paper mill, part of which was designed by Finnish architect Alvar Aalto.

To contact the reporter on this story: Kasper Viita in Helsinki at kviita1@bloomberg.net

To contact the editor responsible for this story: Christian Wienberg at cwienberg@bloomberg.net