AGP Executive Report

Data-Centre Push: Google has halted work on two planned Finnish data centres after clearing about 1,300 acres of forest before completing environmental assessments. The dispute is fuelling calls for tighter regulation of data-centre development. Ukraine Deals: Finland and Ukraine signed agreements worth about €300 million, including Finland’s donation of 10 diesel locomotives and Nokia-ICEYE cooperation on Ukrainian satellite communications. Nokia Results: Third-quarter sales rose 10% to €5.15 billion, with AI and cloud customer sales up 123%; comparable operating profit climbed 35%. Nuclear Milestone: Posiva received a licence to operate the world’s first spent nuclear fuel repository, at Olkiluoto, through 2070. Cybersecurity: Finnish public websites were among those taken offline as organisations raced to patch critical PHP flaws and fend off a surge in attack attempts. Jobs: Finland’s unemployment rate reached 10.4% in September, highlighting how slowly the labour market is responding to the economic recovery.

Finland-Ukraine Business: Prime Minister Petteri Orpo’s Kyiv visit brought seven agreements worth about €300 million, including Nokia and ICEYE satellite cooperation, transport support and help protecting Ukraine’s energy system. A Finnish-Ukrainian business forum was also held. Nokia’s AI Boost: Nokia’s third-quarter sales rose about 10% as AI and cloud demand lifted profits; data-centre sales more than doubled, though costs are rising and its outlook is unchanged. Data-Centre Backlash: Finland’s regulator ordered Google to halt work at two sites after forest clearing for its €13 billion AI expansion. A petition seeking tighter data-centre rules has passed 96,000 signatures, putting the issue before Parliament. Cybersecurity Scramble: Governments and companies rushed to patch critical PHP flaws affecting widely used websites. Finland temporarily took public websites offline as a precaution. Food Industry: Atria’s third-quarter sales rose 4%, but a pork export ban after African swine fever was detected in Finland cut earnings by about €2 million; the company plans slaughtering changes to save €2 million a year. Nuclear Waste: Finland licensed Onkalo, the world’s first permanent repository for spent nuclear fuel, a landmark for the country’s nuclear industry.

Nokia’s AI Boom: Nokia’s third-quarter sales rose 9% to €5.2 billion, while comparable operating profit jumped 35% to €605 million. Sales to AI and cloud customers surged 123%, underscoring the Finnish group’s growing role in data-centre infrastructure. Cybersecurity Disruption: Finland took public-facing government websites offline as operators patched critical PHP flaws that put a large share of websites at risk. The episode highlights the business and public-service exposure created by widely used software vulnerabilities. Ukraine Business Links: Prime Minister Petteri Orpo visited Kyiv to reaffirm Finland’s support and attend a Finnish-Ukrainian business forum with more than ten Finnish companies and organisations. Economic Pressure: Finland’s unemployment rate climbed to 10.4% in September, while bankruptcies also increased, pointing to continued strain on businesses and the labour market.

Cybersecurity: Finland partially took government websites offline after critical PHP vulnerabilities triggered an international scramble to patch systems. The disruption highlights risks for businesses and public services that rely on the widely used software. Jobs and Business Conditions: Finland’s unemployment rate rose to 10.4% in September, and bankruptcies also increased. The EU is providing €1.1 million to support workers laid off in Finland. Corporate Results: Elisa reported lower third-quarter profit. The telecom company is also working with Nokia and Nvidia on AI-powered network trials. Investment: Espoo-based Coherence Quantum raised €2.78 million to develop infrastructure for larger quantum computers, while a Finnish AI compute centre secured a 9 MVA grid connection.

Jobs and Business Closures: Finland’s unemployment rate climbed to 10.4% in September, while 344 bankruptcy proceedings were launched—55 more than a year earlier. Construction, trade and manufacturing recorded the most failures. Elisa Results: The telecom operator’s third-quarter pre-tax profit fell to €115 million from €128 million a year earlier. Revenue held steady at €561 million, and Elisa expects full-year revenue to be flat or slightly higher than in 2025. Tourism Tax: The government has shelved plans for a tourist tax after coalition parties failed to agree, disappointing Rovaniemi officials who say rising visitor numbers are increasing municipal costs.**

Labour Market: Finland’s unemployment rate climbed to 10.4% in September, with 39,000 more people out of work than a year earlier. Employers remain cautious as weak demand and uncertainty delay hiring. Arctic Investment: The EU’s new strategy puts security and infrastructure at the centre, with plans for undersea cables, icebreakers and stronger transport links. Finland is among the countries set to benefit from a stronger European presence in the region. Quantum Technology: Espoo-based Coherence Quantum raised €2.78 million to develop infrastructure for larger quantum computers. Data Centres: 3E Network secured a 9 MVA grid connection for its planned AI compute centre in Mikkeli, advancing a Finnish investment in computing capacity. Space Business: A Russian satellite shadowed a radar craft operated by Finnish-founded ICEYE’s US subsidiary, highlighting security risks for commercial space services. Energy: Fortum and Google have signed a long-term nuclear power purchase agreement in Finland, linking the tech giant’s local operations with low-carbon electricity.

Jobs Market: Finland’s recovery has yet to reach workers: unemployment hit 10.5% in September, up from 10.1% in August, with nearly 300,000 people out of work. Long-term unemployment also rose 9% year on year. Quantum Technology: VTT and Japan’s Q-STAR alliance will connect their research and business networks to speed up the commercialisation of quantum technology. Finnish startup Coherence Quantum, developing controls for larger quantum computers, raised €2.78 million in seed funding. Business Ties: Mongolia’s president visits Finland on October 22–24, with a Finland-Mongolia business forum planned and about 10 cooperation agreements expected. Defence Industry: Finland plans a €100 million purchase of one million domestically produced anti-personnel mines, with production expected to begin by 2028; contracts have not yet been signed. Energy: Fortum and Google have signed a long-term nuclear power purchase agreement in Finland, linking clean electricity supply with growing demand from data centres.

Data-Centre Push: Finland’s regulator has ordered work halted at two Google data-centre sites over forest clearing and a missing environmental impact assessment. Google says it is reviewing concerns and denies wrongdoing. Energy & AI: Fortum and Google have signed a long-term nuclear power purchase agreement in Finland, connecting rising data-centre demand with nuclear power. Finnish Companies: Canada’s Banyan Software has acquired Åland-based ferry software provider Carus, which will remain independent and invest in product development. Volvo Group will launch Volvo Mining in 2027, initially serving customers in Finland, Sweden and Norway. Mining Innovation: Finnish firm Normet and Chile’s Codelco will spend five years developing and testing autonomous underground mining technology, with development work in Pirkkala. Defence Manufacturing: Finland plans to spend about €100 million on one million anti-personnel mines, seeking domestic suppliers and targeting production from 2028. Space Security: Russian satellite Kosmos-2612 made a close approach to ICEYE’s Finnish-built radar satellite, raising concerns about risks to commercial space services.

Data Centre Boom: Finland’s planned 150–200 data centres are fuelling debate after Google’s proposed €13bn project stalled. The company had cleared forest before securing permits or filing a required environmental assessment, raising questions about oversight and the pace of development. Sanctions Enforcement: Yle reports that a network involving two Finnish citizens shipped more than €20m in electronic components to Russia, including technology usable in missile guidance. The case points to potential gaps in export controls. Hospitality Investment: Accor plans to enter Finland with a 157-room ibis Styles hotel in Helsinki’s Kamppi district, converting the historic Hotel Helka for an expected 2027 opening. Energy Costs: The government has agreed to a €60m package to ease fuel prices, rejecting a separate Finns Party proposal. Marine Services: Viking Line has expanded its Wärtsilä service agreement to cover a third vessel, extending the Finnish maritime group’s partnership with the engine and technology supplier.

Maritime Business: Wärtsilä signed a five-year service deal with Viking Line for the Viking XPRS, adding a third ferry to its support programme on the Helsinki–Tallinn route. Online Gambling: Wildz says it has secured a Finnish licence ahead of the market’s July 2027 opening, though the regulator has not publicly confirmed the approval. Trade Ties: Foreign Trade Minister Ville Tavio’s Vietnam visit focused on turning strategic ties into projects in clean technology, construction, data centres and energy. Finnish investment in Vietnam has topped US$1 billion. Household Costs: The government agreed to a €60 million fuel-price relief package as energy costs remain a political flashpoint. Finland also opposed loosening EU carbon-market rules at the Brussels summit. Growth and Jobs: OP forecasts 2% growth for Finland this year and next, while Ubisoft plans to close Finnish game studio RedLynx amid a wider restructuring.

Crypto Case: Richard Heart was detained in Istanbul under an Interpol notice sought by Finland over alleged crypto fraud and tax matters; the allegations remain unresolved. Gaming: Ubisoft plans to close Finnish studio RedLynx, known for the Trials series, amid wider restructuring that puts local jobs at risk. Clean Industry: UPM has opened a €1.37 billion wood-based biorefinery in Germany, the world’s largest of its kind, as it scales renewable chemicals production. Household Costs: Finland’s government agreed to a €60 million fuel-price relief package. Growth & Startups: OP forecasts 2% growth for Finland’s economy this year and next, while Helsinki-based Ambio raised €5.1 million to expand its AI-powered recycled-plastics procurement platform.

Industrial Investment: Finnish forestry group UPM has opened a €1.37 billion wood-based biorefinery in Germany, the world’s largest of its kind, as it scales renewable chemicals for industries including packaging, textiles and tyres. Household Costs: Finland’s inflation reached a 31-month high, while the government agreed to a €60 million fuel-price relief package. Startup Funding: Helsinki-based Ambio raised €5.1 million to expand its AI-powered recycled-plastics procurement platform. Mining: Endomines extended its gold-concentrate agreement with Boliden Commercial through 2032.

Energy Costs: The government agreed to a €60 million fuel-price relief package as energy costs weigh on households and businesses. Prices: Finnish inflation reached a 31-month high, adding to pressure on consumers and firms. Company Results: Finnair raised its 2026 revenue and profit outlook, and Kesko reported September sales growth of 4.8%; Olvi, by contrast, issued a profit warning. Investment: Helsinki AI startup Ambio raised €5.1 million, while SSAB and Finnish researchers committed €40 million to cleaner steel and Rabbalshede Kraft began work on Finnish solar projects. Technology: Nokia has sold its private wireless unit but still faces challenges offloading other businesses.

Renewable Energy: Sweden’s Rabbalshede Kraft has begun building two Finnish solar parks with combined capacity of 108.2 MWp. The projects in South Ostrobothnia and North Savo are due to start operating in spring 2027. Business Expansion: IT services company Advania plans to open a new Finnish headquarters in Helsinki’s Pasila district this month. Fuel Costs: The government has agreed to a €60 million package to ease fuel-price pressures, while EU leaders are also seeking joint action on energy costs. Gaming: Wildz says it has secured Finland’s first online gambling licence ahead of the market’s planned opening in July 2027. Economic Outlook: OP forecasts 2% growth for the Finnish economy this year and next. Ubisoft, meanwhile, plans to close its Finnish studio as part of a wider restructuring.

Fuel Costs: The government agreed to €60 million in relief, including vehicle-tax cuts, a higher commuting deduction and subsidies for transport, farming and forestry. It rejected a broader cut to renewable-fuel requirements. Market Expansion: Finnish AI sales firm Optivian is moving into the UK and Ireland, while Wildz became the first gambling operator licensed for Finland’s market, which opens in July 2027. AI and Infrastructure: Finland has ordered work to stop on two Google data centres amid growing scrutiny of power demand. Finnish officials also pitched low-emission energy expertise in Vietnam, where Nokia discussed potential private 5G cooperation. Jobs: Ubisoft plans to close Finnish game studio RedLynx, while Telia’s planned 900 job cuts include 280 in Finland. Economic Outlook: OP expects Finland’s economy to grow 2% this year and next, even as inflation reaches a 31-month high. EU leaders also agreed to review carbon-market rules amid pressure over energy costs.

Google’s Finland Plans: Finland’s regulator halted preparatory work at Google’s Muhos and Kajaani data-centre sites after about 530 hectares of forest were cleared before required environmental assessments. Google apologised, putting its €13 billion investment programme under pressure. Job Cuts: Ubisoft has proposed closing Finnish studio RedLynx, affecting up to 52 jobs, as it seeks to return to profitability; it is also cutting 70 roles in Singapore. EU Policy: Finland joined Denmark and Sweden in opposing any weakening of the emissions trading system, saying predictable carbon rules are vital for industrial investment. EU leaders also failed to agree on the bloc’s next long-term budget, raising doubts about a deal by year-end. Economic Outlook: OP forecasts 2% growth for Finland this year and next, while inflation has reached a 31-month high. Nordea warns that higher interest rates could weigh on consumer confidence; Kesko, meanwhile, reported 4.8% sales growth in September. Cleaner Steel: SSAB and the University of Oulu are investing €40 million in research into lower-carbon steel production.