Finland’s Q4 2025 business snapshot: Energy transition and tech innovation leap ahead

The final quarter of 2025 ended with strong momentum in clean energy, advanced technology, and sustainable industries, reinforcing Finland’s position as a global innovation leader. Significant investments, policy reforms, and international collaborations during this period are expected to shape the country’s competitiveness and growth path in the coming decade.

Accelerating clean transition

A new National Energy and Climate Strategy was introduced, serving as a key element of the country’s goal to become a leader in sustainable power. “The goal is to transform Finland into a clean energy leader in Europe,” said Sari Multala, Minister of Climate and the Environment.

This ambition is supported by significant investments: renewable energy company OX2 announced €400 million for three new wind power projects. Meanwhile, near the city of Oulu in northern Finland, one of the country’s largest solar power plants was completed.

Policy incentives are also fueling momentum. Business Finland awarded €2 billion in investment tax credits to 37 clean transition projects. In comparison, five Finnish initiatives secured €300 million from the EU Innovation Fund, including Neste’s plan to turn its Porvoo oil refinery near Helsinki into a circular solutions hub.

Hydrogen is emerging as a key growth sector. German firm Hy2Gen announced plans for an e-methanol plant in Oulu, while P2X Solutions received permits for the country’s largest green hydrogen facility in Joensuu, Eastern Finland. Ren-Gas has also confirmed €1.5 billion in hydrogen investments across six regions. 

In addition, starting January 2026, a new national multidisciplinary permitting and supervision agency will streamline permit processes, boosting predictability for renewable projects.

AI, quantum, and data centers gain momentum

The final quarter saw the country strengthen its position as a European technology leader with advances in artificial intelligence, quantum computing, and connectivity. The LUMI AI Factory opened at Aalto University’s campus in Espoo, just outside Helsinki, offering Europe’s largest AI innovation space for startups and SMEs.

In a significant vote of confidence, Nvidia invested $1 billion in Nokia, speeding up the development of AI-based network solutions and data center infrastructure. Nokia also landed major 5G contracts in Italy and Germany, strengthening its global standing.

Quantum technology has advanced quickly. Finland now ranks among Europe’s top five countries for quantum patent applications, and VTT, a state-owned research and technology organization, launched a program offering companies free access to its superconducting quantum computer for public research projects.

Meanwhile, data center development increased, with Meta announcing a large facility near Oulu and FCDC Corp planning an €8 billion project in Vaasa, a western city known for its energy cluster. Nearly 80 data centers are either commissioned, planned, or under initial review, and are set to be supported by a planned 10-year tax refund scheme based on electricity use.

Scaling sustainable innovation

Finland welcomed the EU’s new Bioeconomy Strategy, unlocking opportunities for rural growth and bio-based industries. Metsä Spring announced plans for a textile fiber plant in Kemi, a northern industrial town near the Swedish border, which will produce 100,000 tonnes annually.

Kemira, a leading Finnish chemicals company specializing in water treatment and industrial solutions, secured a €50 million loan to fund a new biomaterials plant. This investment boosts the production of renewable, bio-based products, strengthening Finland’s position in sustainable chemistry.

Carbon capture and green chemistry also gained momentum. Metsä Group piloted CO₂ capture at its Rauma mill on the west coast, a technology that could generate €7 billion in additional revenue for the forest industry. Forestry firm UPM launched the world’s first carbon-negative bio-based pigment, enabling recyclable premium packaging and addressing long-standing challenges in black packaging recycling. 

Global expansion and tourism boom

The health technology sector saw record growth in Q4, spearheaded by Oura’s significant funding round and swift international expansion. The Finnish wearable tech company raised $900 million, valuing it at €9.5 billion and setting the stage for US FDA-level validation of new health monitoring features.

Optomed in Oulu and Aiforia in Helsinki expanded into the US and French markets, while Terveystalo invested in AI-powered tools to improve clinical workflows. These developments highlight the country’s growing influence in digital health and medtech innovation.

Tourism ended the year with record-breaking expectations. Finland expects 1.3 million foreign visitors this winter, bringing in €1.3 billion in spending. Oulu was named one of the top 20 global destinations for 2026 by the BBC and National Geographic, mainly due to its upcoming role as a European Capital of Culture. 

Overall, Finland’s Q4 2025 performance highlights its strategic shift toward leadership in clean energy, digital innovation, and bio-based growth, backed by strong policy frameworks and international partnerships. With significant investments in hydrogen, AI, and sustainable manufacturing, it is building a resilient, future-ready economy.