Sweden is undergoing a major industrial transformation driven by electrification, energy security, and the rapid expansion of digital and defence infrastructure. Each quarter, we highlight verified project activity in the key sectors that currently show the strongest momentum and workforce demand.
In Q4 2025, developments continued across four priority areas:
Energy, Industrial Manufacturing & Life Science, Data Centers, and Defence.
These sectors are central to Sweden’s industrial strategy and international collaboration, reinforcing the country’s position as one of the Nordic region’s most active engineering environments.
Energy
Small Modular Reactors (SMRs) – Nuclear expansion
The Swedish state utility Vattenfall has shortlisted Rolls-Royce SMR and GE Vernova as suppliers for new small modular reactors following recent legislation to expand nuclear capacity. Planned capability is around 1,500 MW by the mid-2030s, marking Sweden’s first new reactors in four decades (reuters.com, Aug 2025). This shift supports Sweden’s growing industrial power demand and long-term energy security, especially in the northern industrial regions (scalefocus.com, Aug 2025).Green steel development in Boden
Stegra, formerly H2 Green Steel, is building Europe’s first large-scale fossil-free steel plant in Boden. The €6.5 billion project integrates renewable-powered hydrogen production and aims to deliver 2.5 million tonnes of green steel annually starting in late 2026 (lemonde.fr, June 2025). Construction is driving demand for power systems engineers, commissioning specialists, and industrial facility expertise.What to follow in Q1 2026 – Energy
- Contract awards for SMR site and early-works packages.
- Installation milestones for hydrogen-based steel production units.
- Additional green industrial offtake agreements.
Industrial Manufacturing & Life Science
Northvolt Ett – Skellefteå
Expansion works continued in Q4 2025 at Northvolt Ett’s battery manufacturing campus in Skellefteå. The site integrates a recycling facility for critical minerals and supports international EV supply chains across Europe (reuters.com, Sept 2025).Volvo – Northvolt battery plant – Gothenburg
The joint battery plant in Gothenburg progressed through mechanical and electrical installation stages in Q4 2025. Once operational, the facility will produce next-generation vehicle batteries and employ around 3,000 specialists (northvolt.com, Jul 2025; reuters.com, Apr 2025).Scania battery assembly – Södertälje
Scania’s new 18,000 m² battery assembly plant reached full operation during 2025. The facility manufactures battery modules for electric heavy vehicles in expanding European logistics markets (scania.com, Nov 2024).What to follow in Q1 2026 – Industrial Manufacturing & Life Science
- Commissioning of new cell and module production lines.
- Workforce scale-up in automation and maintenance roles.
- Supplier agreements supporting electrification manufacturing.
Data Centers
Strängnäs AI-driven data center
Brookfield Asset Management plans up to SEK 95 billion investment in an AI-optimised data center campus near Strängnäs. The project is expected to support more than 3,000 jobs and drive local infrastructure upgrades (reuters.com, Jun 2025).EcoDataCenter 2 – Borlänge
EcoDataCenter has launched construction of its 600 MW campus in Borlänge. The development is located on a former paper-mill site and integrates heat-recovery technology for district heating systems (datacentremagazine.com, Sept 2025).What to follow in Q1 2026 – Data Centers
- Grid-connection progress for AI and hyperscale sites.
- New land acquisitions and planning announcements.
- Implementation of sustainable systems in data operations.
Defence
Infrastructure and NATO capability investments
Sweden has committed to increasing defence expenditure to around 5 percent of GDP by 2030 to support NATO readiness. Q4 2025 activity includes procurement and planning of new military infrastructure and logistics support hubs (scalefocus.com, Aug 2025). Cushman & Wakefield reports expanding opportunities in northern Sweden related to aerospace and surveillance systems, with rising need for specialist contracting partners (cushmanwakefield.com, Oct 2025).What to follow in Q1 2026 – Defence
- Awarding of major logistics and base-construction contracts.
- Supplier partnerships in surveillance systems and integration.
- Workforce demand for cleared engineers and technicians.
Cross-Sector Workforce Outlook
Project activity continues to drive strong demand for external specialists across the energy, manufacturing, data, and defence sectors. Agencies report consistent hiring needs in roles such as project management, HSE, QA/QC, commissioning, industrial automation, and grid engineering. Electrification and defence both intensify demand for security-cleared and systems-integration competencies.Summary
Q4 2025 reinforces Sweden’s role as a leader in industrial electrification, energy transition, and digital and defence capability. Major projects and international collaboration continue to shape a strong market for specialised external professionals. The developments outlined this quarter highlight Sweden’s continued attractiveness for complex engineering setups supported by long-term national investment strategies.Disclaimer
All project details are sourced from publicly available material and verified media or institutional reports. Northern Partners provides this overview for informational purposes only and does not claim ownership or operational involvement in the projects described.
