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

Shares of Finnish energy provider Fortum surged approximately 10% after announcing a 22-year power purchase agreement with Google. The long-term deal covers up to 50% of the capacity at Fortum's Loviisa nuclear power plant, ensuring the facility can implement life-extension upgrades and operate through 2050. The plant currently supplies roughly 10% of Finland's electricity and employs about 580 people. Fortum stated the contract is expected to boost its group comparable return on net assets by 1.4 percentage points. In tandem with the power agreement, the two companies established a memorandum of understanding to explore new nuclear, renewable, and flexibility capacity in Finland. The initiative is aimed at securing reliable, low-carbon energy to meet the rapidly expanding power demands of Google's artificial intelligence infrastructure without compromising long-term domestic power supply. Google announced plans to invest at least €13 billion in Finnish digital infrastructure between 2027 and 2028, encompassing data centers in Hamina, Kajaani, Muhos, and Vaala. An additional €31 million will be dedicated over four years to local community, education, and innovation initiatives.