Fortum shares surge on long-term nuclear power deal with Google

Shares of Fortum rallied 10% on Tuesday after the Finnish energy group signed a long-term power supply agreement with Google, securing decades of revenue visibility tied to one of its nuclear facilities.

Under the 22-year power purchase agreement, Google will take up to 50% of the capacity at Fortum’s Loviisa nuclear plant, backing a life-extension and modernization program intended to keep the facility running to 2050. Fortum said the deal should eventually raise the group’s comparable return on net assets by about 1.4 percentage points once half of the plant’s output is contracted.

Fortum warned that without the extension program, the Loviisa plant—which currently employs around 580 people and supplies roughly one-tenth of Finland’s electricity—would not be able to operate beyond 2030.

Alongside the supply agreement, the two companies signed a memorandum of understanding covering the possible development of new nuclear, renewable and flexibility capacity in Finland, as well as energy portfolio management services. They stated that the arrangement is set up to add more low-carbon generation as AI-driven electricity demand rises, protecting long-term power availability for Finnish households and enterprises.

Google intends to pour at least €13 billion into Finnish digital infrastructure during 2027-2028, encompassing data centers and related facilities in Hamina, Kajaani, Muhos and Vaala. Google said this investment deepens its lasting commitment to Finland and the wider European market.

The company is also allocating €31 million over four years across those same four towns to back local efforts in education and economic development, including a €10 million slice reserved specifically for research and innovation.