Google announced €13 billion of Finnish investment for 2027 to 2028 on September 9 and signed a 22-year power-purchase agreement with Fortum covering up to 50% of the Loviisa nuclear plant's capacity. The cloud spending is the larger announcement. The Fortum contract is the part investors can tie to a specific operating asset. (Google)
Loviisa's two reactors each have 507MW of net capacity, or 1,014MW combined, and generate about 8TWh a year. Once the PPA reaches 50% of current plant capacity, it corresponds to roughly 507MW. On a simple proportional-output basis, that is about 4TWh of current annual generation. The actual delivery profile may differ, and Fortum has not disclosed the pricing formula. (Fortum)
The PPA starts at a smaller volume in 2028 and covers 50% of Loviisa capacity from 2030 through 2049. Fortum expects it to raise group comparable return on net assets by about 1.4 percentage points over time once the 50% level is reached. That is management guidance, not an achieved return. (Fortum)
A long-term buyer changes the economics of extending an old plant
Fortum is already running an approximately €1 billion programme to extend Loviisa's operating life through 2050.
About €700 million of required capex and roughly 80% of the individual projects still await investment decisions. Fortum says the Google agreement gives it revenue certainty to continue investments linked to the plant's full life extension, though each project remains subject to a separate decision. (Fortum)
Google is not financing that capex directly. The contract improves the revenue side of Fortum's investment case by locking in a large customer for a substantial share of future output.
That is valuable because nuclear lifetime extensions require capital before future merchant prices are known. Contracting a large slice of output reduces price exposure on that volume while Fortum keeps ownership of the plant and responsibility for the investment programme.
Fortum says the PPA differs from its normal financial hedging because it reflects long-term customer value rather than short-term market pricing.
The 1.4-point RONA uplift is a group estimate
Fortum's comparable RONA was 11.0% for the 12 months ended June 2026, against a 14% long-term target. Management says the PPA should add about 1.4 percentage points once 50% of Loviisa's capacity is contracted.
Investors cannot convert that figure directly into PPA profit without the relevant net-asset denominator and the incremental capital base over the period. Even so, it is unusually specific for a data-centre power agreement: Fortum has attached a quantified group-return estimate to the contract.
The deal may also support physical output growth. Fortum expects it to enable an additional 10MW power increase beyond a previously planned 38MW uprate due in 2028. Google and Fortum separately signed an MoU covering potential new nuclear, renewables and flexibility, while Fortum will optimize a 94MW battery associated with Google's Kajaani site. Those are separate development arrangements, not part of the contracted Loviisa output. (Fortum)
Google's build starts before the PPA reaches full volume
Google's €13 billion programme is concentrated in 2027 and 2028. The nuclear contract begins at a smaller volume in 2028 and does not reach 50% until 2030.
So the announcement does not show that half of Loviisa will immediately power Google's new Finnish data centres, nor does it allocate the contracted nuclear volume among Hamina, Kajaani, Muhos and Vaala.
For Fortum shareholders, the more concrete point is that a 22-year customer contract now sits behind an economically material share of Loviisa at the same time the utility still has about €700 million of life-extension capex awaiting project-level approval. Google's €13 billion says how large the computing build could become. Fortum's 1.4-percentage-point RONA estimate gives investors a measurable claim about what one part of that demand could do to an existing asset.
Sources
Fortum, Google PPA, Loviisa capacity, capex and RONA disclosure
Google, €13bn Finland investment
Google, Finland clean-energy partnerships