AGP Executive Report

Defence Supply: Finland will send ammunition for Ukraine’s F-16s in the coming days as part of its 35th military aid package, worth about €1 million. Data Centres: Authorities have halted work at two Google sites over forest clearing and unresolved environmental reviews, complicating Finland’s push to attract major AI investment. French firm Sesterce, meanwhile, has proposed investing up to €10 billion in a 600MW AI campus at a former industrial site. Energy Storage: Nala Renewables has started construction on a 250MWh Finnish battery project, adding to a growing pipeline of grid-scale storage. Trade and Industry: The US has overtaken Sweden as Finland’s largest export partner, while Finnish industrial output fell for a second consecutive month.

Industrial Output: Finnish industry’s working-day-adjusted turnover rose 11.8% year on year in August, led by chemicals (+32.1%), electronics and electrical equipment (+17.1%) and metals (+13.1%). Data Centre Boom: Finland has halted work at two Google data-centre sites after forest clearing began without completed environmental impact assessments. The decision puts scrutiny on the company’s planned €13 billion expansion, as Sesterce separately proposes a €10 billion AI campus in Central Finland. Energy Storage: Nala has moved a 250MWh Finnish battery project into construction, while Olana has connected two batteries to the distribution grid. Building Materials: Heidelberg Materials and CRH are acquiring NCC’s aggregate operations in Finland, reshaping ownership in the Nordic materials market.

AI Infrastructure: Finland has halted work at two Google data-centre sites over alleged forest-clearing violations and incomplete environmental assessments, underscoring permitting risks for major projects. French firm Sesterce, meanwhile, plans to invest up to €10bn in an AI campus on a former industrial site, with capacity of up to 600MW. Energy Dispute: Rosatom says an ICC tribunal ruled that Fennovoima unlawfully terminated the Hanhikivi-1 nuclear plant contract; the dispute continues through legal proceedings. Batteries: Nala Renewables has started construction on a 250MWh Finnish battery, while Olana has connected two batteries to the distribution network. Materials: Heidelberg Materials has agreed to buy NCC’s materials operations in Finland and Denmark, expanding its Nordic footprint.

Digital Building Services: KONE opened its first Indian Digital Experience Centre in Pune, showcasing connected elevators and data-driven building operations. Circular Manufacturing: Syklo launched a €70–80 million Hyvinkää hub combining Finland’s largest plastic recycling plant with biocomposite production. It can process 50,000 tonnes of plastic waste annually, lifting national recycling capacity by 50%. Critical Materials: The EU named 46 new strategic projects, including Arctial’s planned primary aluminium smelter in Kokkola-Kronoby and a Finnish lithium-processing project, to strengthen European supply chains. Industrial Activity: Finland’s industrial output fell for a second month in August, though it remained above its year-earlier level. Data Centre Investment: Finnish authorities halted work at Google data centre sites over alleged forest clearance and environmental concerns, highlighting permitting risks as France’s Sesterce proposes a €10 billion, 600-megawatt AI campus in Finland. Logistics Property: Catena agreed to buy a ten-property Finnish logistics portfolio for €191 million, adding modern assets across the Helsinki–Tampere–Turku corridor.

Talent Pipeline: International recruits now earn 32% of Finland’s doctoral degrees, up from 21% in 2015; their share of STEM doctorates has climbed to 49%, as Nordic universities struggle to attract local candidates. Logistics: Catena is buying 10 Finnish properties from Urban Partners for €191 million. The 142,300-square-metre portfolio is concentrated in the Helsinki-Tampere-Turku corridor and strengthens Catena’s Finnish base. Data Centres: Finland has halted work at two Google sites over alleged forest-clearing violations, pending environmental reviews. The move highlights permitting and land-use risks for a sector attracting major investment, including Sesterce’s proposed €10 billion AI campus. Trade: The US became Finland’s largest export partner in August, overtaking Sweden. Exports to the US reached €1 billion, up 224% year on year, with pharmaceuticals driving much of the increase. Industrial Output: Production fell 1.3% month on month in August, though it was up 0.8% from a year earlier. Chemical output saw the sharpest monthly drop, down 11.8%.

Data Centre Expansion: Finland has halted preparatory work at Google’s planned Muhos and Kajaani sites after regulators cited extensive forest clearing before environmental assessments were complete. A police investigation is under way. AI Investment: French firm Sesterce plans to invest more than €10 billion in an AI campus at the former UPM paper mill in Jämsä, starting with 200MW and potentially expanding to 600MW. Battery Storage: Nala Renewables has begun construction of its 125MW/250MWh Vuolijoki project, while Olana Energy commissioned two southwest Finland sites adding 17MW and 18MWh. Investment Conditions: Business Finland chief Lassi Noponen says Finland should secure greater local benefits from data centre projects, as tighter grid access and environmental rules challenge the sector’s rapid growth.

Data-centre oversight: Finland ordered Google to stop major site work at planned centres in Muhos and Kajaani until environmental assessments are complete. The order follows extensive forest clearing and is a setback for the company’s €13 billion investment plans. AI investment: French firm Sesterce plans to invest more than €10 billion in a data-centre campus at the former Kaipola paper mill in Jämsä, starting with 200 MW of capacity. The project could expand to 600 MW and create about 300 permanent jobs, subject to approvals. Energy storage: Nala Renewables has begun construction of a 125 MW battery project in Vuolijoki. Finnish startup Truman Data, meanwhile, has launched a revenue-sharing platform that helps buildings and municipalities earn from battery storage and flexible electricity use. Industry outlook: Finnish industrial output fell for a second month, adding to signs of pressure even as major technology and energy projects advance.

Data Centre Boom: Finland has ordered Google to halt preparatory work at planned sites in Muhos and Kajaani until environmental assessments are complete. The order follows forest clearing and a police inquiry into suspected illegal logging. AI Investment: French firm Sesterce plans to invest more than €10 billion in a data centre in Jämsä, starting with 200MW of capacity. Applied Digital has also secured access to up to 1GW of potential Finnish power capacity. Industrial Activity: Output fell 1.3% in August, marking a second monthly decline; manufacturing was also down 1.3%. Manufacturing: Exel Composites has completed a production line in Joensuu to make carbon-fibre tubes for a cargo airship, while Valtra unveiled a redesigned tractor range built at its Suolahti plant. Materials and Exports: CRH is set to acquire NCC’s aggregates operations in Finland and Denmark. Separately, Nouryon won Chinese approval to supply a Finnish-made plant-based ingredient for pharmaceutical manufacturing.

Data Centre Expansion: Finland ordered Google’s subsidiary to halt environmentally significant work at planned data centres in Muhos and Kajaani until environmental impact assessments are complete, following extensive forest clearance. Google said it had fallen short of its standards. Grid Access: Finland is changing connection rules to move large data centres behind higher-priority users. Applied Digital, meanwhile, secured access to up to 1GW of potential power capacity in the country. Energy Storage: Nala Renewables has moved its 125MW/250MWh Vuolijoki battery project into construction, adding to its Finnish pipeline. Infrastructure: CRH agreed to acquire NCC Industry’s operations in Finland and Denmark, expanding its aggregates, quarrying and recycling business. Industrial Technology: An Imatra electric-arc furnace recycled retired Figure humanoid robots, with the recovered metal sent to the United States.

Google Data Centers Under Scrutiny: Finland’s LVV ordered Tuike Finland Oy to halt preparatory work at two planned Google sites in Muhos and Kajaani until required environmental impact assessments are completed, after forest clearing and other changes were reported without the mandatory process. Construction & Materials Deal: CRH agreed to acquire NCC Industry’s aggregate and asphalt operations in Denmark and Finland, expanding CRH’s Nordics footprint in quarries, recycling and asphalt networks. Chemicals Regulation: ECHA’s risk assessment committee recommended stricter EU classification of trifluoroacetic acid (TFA) as a reprotoxic substance and persistent, mobile and toxic, with long-lasting water contamination concerns. Energy & Industry Policy: Finland’s grid rules are being rewritten to push large data centers further back in the connection queue, as authorities respond to power and environmental pressure. Logistics Automation: Aldi and Cimcorp deployed automated fresh-produce handling at a UK distribution center, aiming to move high volumes with precision. AI Infrastructure Financing: ASP Data Center AS is reportedly exploring an Oslo IPO that could raise about $100m, with a Finland site in its expansion plans.

Google Data-Centre Backlash: Finland’s LVV has ordered a halt to preparatory work on two Google sites in Muhos and Kajaani after forest clearance without required environmental impact assessments, with compliance deadlines set for 23 October and further explanations due in mid-October. Grid Rules Shift: Finland is drafting Electricity Market Act changes that scrap first-come, first-served grid connections for data centres, replacing it with a priority ranking that pushes large loads lower unless they add their own generation or can cut demand. Power Deals for AI Buildout: Applied Digital says a Finland power agreement gives it access to up to 1GW of potential capacity, marking its first overseas development step, while Google also signed a 3.6GW nuclear-linked energy deal with Constellation for long-term supply. Industrial Tech in Finland: Exel Composites expanded carbon-fibre tube production capability in Joensuu for Flying Whales’ LCA60T airship, moving into process validation. Defense Industry Contract: Patria will equip its TRACKX tracked vehicles with RENK transmissions under a €30m order, with deliveries starting in 2027. Robotics Spotlight: Figure decommissioned its F.02 humanoid robots by training them to jump into molten steel in Finland, turning a disposal plan into a spectacle.

Grid & data centers: Finland is drafting a shift away from first-come, first-served electricity grid connections, creating four priority categories that could push large computing facilities further back unless they meet extra production and flexibility conditions. EU funding: The European Commission has greenlit Finland’s fifth NextGenerationEU Recovery and Resilience Facility payment request worth €229.2m, tied to milestones across decarbonisation, digitalisation, cybersecurity, and research. AI governance: A new Oxford Insights study says cities are rolling out AI in public services without a shared readiness framework; it proposes a City AI Readiness Index and includes Helsinki and Tallinn among six studied cities. Energy & industry: ECB policymaker Olli Rehn said high bond yields may dampen energy-price pass-through into broader inflation, easing pressure on wages and goods. Workplace wellbeing: A Finnish Institute of Occupational Health study finds 26% of working Finns face elevated risk or severe burnout, linked to bureaucracy and role conflicts. Maritime & ports: Turku’s Maritime Fair returns Oct 29–30, spotlighting digitalisation, smart ports, and sustainability. Robotics: Figure decommissioned outdated humanoid robots by melting them in a molten-steel furnace in Imatra, with Arnold Schwarzenegger involved. Beverages: Carlsberg is extending its PepsiCo partnership into Georgia and Armenia via acquisitions of bottling businesses. Health & screens: A Finnish-linked discussion highlights that some screen time may support brain development in young people, with important caveats.

Arctic Mobility Upgrade: Finland and Sweden have ordered Patria’s Trackx tracked armored vehicle to replace aging M113/MT-LB fleets, with trials starting in 2027 for softer, snow-heavy conditions. Defense Tech Funding Boom: Dealroom forecasts European defense startups could raise a record $10.5B in 2026, led by mega rounds in drone-focused firms. Data Center Scrutiny in Finland: Finnish regulator LVV is investigating claims that Google cleared about 300 hectares near Muhos before an environmental impact assessment was completed. Solar Expansion: Alight bought a 2 GW southern Sweden solar portfolio from Soltech, with options for battery storage and plans to push projects toward build-ready status. Construction Electrification: SSA Rakennus used Lekatech’s Leka Toras 35 electric hammer in Helsinki to cut noise, vibration, and emissions during a school-to-housing redevelopment. EU Budget Fight: Ireland will present a draft seven-year EU budget, with frugal states including Finland pushing for smaller totals and more defense/competitiveness focus. Health R&D: Orion Pharma dosed the first patient in a Phase 1/2 trial of ODM-216, its first clinical-stage biologic.

Finnish Defence & Aerospace: Finland welcomed its first two permanently based Lockheed Martin F-35A jets, starting a new fifth-generation capability for the Finnish Air Force and strengthening NATO-linked deterrence in the Nordic region. Steel & Industry Demand: A GMK Centre outlook points to a cautious recovery in Finnish steel consumption in 2026, with growth increasingly driven by data centres, energy-transition projects and transport infrastructure rather than residential building. Power Infrastructure for Data Centres: Caverion won a €15m contract to design and deliver a 70MW Nebius data-centre substation in Mäntsälä, targeting completion in autumn 2027. Tech & Security: GLI is pushing a new cybersecurity testing and certification framework for gaming vendors, aiming to close third-party security gaps. Energy Storage: Finnish startup Polar Night Energy is advancing “sand battery” heat storage for district heating, with a second unit under construction. EU Farm & Cohesion Funding: Seventeen EU states, including Italy and Romania, urged the EU to protect cohesion and CAP funding in the 2028–2034 budget. Google Data-Centre Scrutiny: Finnish authorities are examining claims that Google’s expansion cleared forest land before environmental-impact assessments were finished. Renewables Policy: Spain, Portugal and Luxembourg are pressing for a 2040 EU renewable energy target, clashing with countries that want nuclear included.

Data-Center Scrutiny in Finland: In Muhos, Google’s €13bn AI buildout is drawing regulatory heat after reports of large-scale forest clearing before environmental reviews were finished, with Finland’s LVV investigating whether required assessments were completed. Helsinki Maritime Disruption: An unidentified metal object near Helsinki forced a temporary closure of the Helsinki–Tallinn shipping route; authorities cordoned the area, involved the Navy, and later said it appears linked to an old shipwreck. AI Meets District Heating: Helsinki is testing whether data centers can cut emissions by turning waste heat into hot water for homes, via OnZero’s “AI Heat Factory” deal with Helen to supply heat for about 70,000 apartments from 2027. Energy Security Watch: Separate coverage highlights global pressure on energy affordability and security, including G7 moves to release emergency fuel reserves coordinated through the IEA. Industry Signals: Finland’s tech and infrastructure push also shows up in broader investment and AI infrastructure reporting, while Finland’s ICEYE and other Nordic players continue expanding in satellite and defense-linked markets.

Maritime Safety in the Gulf of Finland: A cone-shaped metal object near Helsinki forced a temporary closure of the Helsinki–Tallinn shipping lane and stopped ferry traffic, with police calling in the Finnish Navy; authorities now say it’s likely an old shipwreck part and not an explosive threat, with towing planned for further checks. Arctic Security & Defence: Spain’s King Felipe VI and Queen Letizia begin a state visit to Finland focused on Baltic and Arctic security as Russia-linked incidents raise pressure; the visit also follows joint Nordic air intercept activity. Energy & Data Centres: Google’s €13bn investment is set to reshape rural Muhos, with locals weighing the economic upside against major concerns over power demand. AI in Europe: Aleph Alpha released Kolibri, a European-built open-weight AI model trained with heavy German emphasis, targeting regulated sectors including public administration and defence. Finland’s Industrial Tech Push: Bull doubled supercomputer output after expanding its Angers factory, enabling systems like Finland’s LUMI-AI to be built in parallel. Tourism Resilience: Finnish Lapland resorts Ruka and Levi opened early ski slopes using stored snow, showing how operators are extending winter seasons.