Goal to enter the Top 10 of the Global AI Index
Implementation guidelines for the nuclear power roadmap, centered on financial support and deregulation for the nuclear sector, were also announced.
The outlook for Sweden's economic growth in 2026 is bright. With the success of monetary tightening policies implemented from 2023 to 2024 to control inflation, both inflation and growth have been brought under control. The Bank of Sweden forecasts an economic growth rate of 2.9% for this year. Exports are also expected to grow by 5% this year, bringing the trade balance to $1.45 billion.
The Swedish government is now taking a step further than simply reviving the economy and is successively announcing blueprints for future strategies. In particular, on February 25, 2026, the Swedish Ministry of Finance, the Ministry of Climate and Business, and others established and officially announced the 'Comprehensive National AI Strategy.'
Leaping to become one of the world's top 10 AI leaders
The Swedish government's AI strategy is distinctive in that it aims to enhance public welfare by leading responsible and safe AI development, going beyond mere technological superiority. It seeks to emphasize the implementation of Green AI while establishing a world-class public administration system, and to eliminate AI regulations while increasing R&D budgets to build world-class AI infrastructure and foster businesses. Furthermore, it considers facilitating data sharing through legislation, establishing a Swedish-based Large Language Model (LLM), and expanding related infrastructure such as data centers. In particular, this strategy presents a blueprint for securing technological leadership while minimizing the risks associated with AI development.
Sweden currently ranks 17th in the global AI index. Compared to technology leaders such as Singapore and the United States, the government's strategy and infrastructure investment are relatively weak. Accordingly, the Swedish government plans to enter the top 10 in the short term by increasing government-led infrastructure investment and expanding data openness.
Regardless of the government's recent announcement, Sweden possesses a well-established foundation for the advancement of AI. Public data managed at the national level is of high quality, making it easy to build AI models. Furthermore, in terms of data centers for AI technology development, the country boasts an abundant supply of eco-friendly energy and climatic conditions conducive to maximizing cooling efficiency. Local companies also contribute significantly to the AI industry. For instance, Ericsson is leading the global standard for L4S (Low Latency, Low Loss, Scalable Throughput) technology alongside global giants such as Google and Apple.
Erik Slottner, Minister for Public Administration, emphasized that “AI is more than just a technological advancement; it is the key to innovation that will reduce the administrative load and allow more time to be dedicated to core public services,” stating that “the pinnacle of Sweden’s AI strategy lies in technological self-reliance and public diffusion.”
To implement the AI strategy, the government has allocated a total of 479 million SEK (approx. $5,212 million) to AI-related reforms in the 2026 budget. In addition, it plans to continuously invest at least 500 million SEK (approx. $54.4 million) annually until 2030.
Strategic Nuclear Expansion Choice for AX: Announcement of 'Nuclear Roadmap Implementation Guidelines'
A prerequisite for the expansion of the AI industry is a sufficient power supply. The Swedish government has restored nuclear power to the top priority of its energy policy and plans to proceed with the construction of at least two new nuclear power plants (2,500 MW) by 2035 and a total of 10 plants (10,000 MW) by 2045. In February 2026, it released a package of implementation guidelines and legislation (Proposition 2025/26:160) that elaborates on the 'Nuclear Roadmap' announced in 2023.
The core of this announcement is to remove regulatory barriers to the construction of new nuclear power plants and to begin full-scale financial support to secure electricity equivalent to two large nuclear power plants by 2035.
• Financial Guarantee: The government will provide government loans and financial guarantees totaling 220 billion SEK (approximately US$24.16 billion) over the next 12 years (the government will share a certain portion of the private investment risk).
• Two-way CfD (Collective Difference Agreement): Guarantee of a base price of 80 öre/kWh (0.8 SEK/kWh) for 40 years after commissioning (government subsidizes if market price is lower than this, and recoups excess profits if higher)
• Streamlining administrative procedures: The licensing period, which previously took 11–12 years, is shortened by 4 years to 7–8 years (Fast-track licensing applies to Small Modular Reactors verified in the U.S. or EU)
• Local Government Subsidy: Allocation of a subsidy of 2,000 million SEK (approx. $218 million) to assist local governments in feasibility studies for nuclear power plant introduction (improving community acceptance)
In the case of two-way settlement of costs contracts, they are designed to guarantee stable revenue for power generators. The reference price is a recommendation proposed by the government investigation committee (Mats Dillén report/SOU 2024:57/Finansiering och riskdelning id investeringar in ny kärnkraft), and the actual specific guaranteed price is finalized through individual negotiations between the government and the operator for each project.
The reduction in administrative procedures is groundbreaking. By eliminating redundant reviews under the Environmental Act and the Nuclear Energy Act, the plan is to shorten the licensing process, which previously took 11 to 12 years, to 7 to 8 years—a reduction of approximately 4 years. To achieve this, the construction period will be accelerated by integrating the environmental impact assessment and site approval stages, and licensing procedures will be significantly simplified for Small Modular Reactors (SMRs) that have already been verified overseas, such as in the U.S. or the EU. These moves are expected to present significant opportunities for domestic nuclear power plant equipment manufacturers in the future.
Meanwhile, as regulations on coastal and archipelago areas, where nuclear power plant construction has been strictly prohibited under the Environmental Protection Act, are lifted as of July 15, 2026, potential sites for nuclear power plants are set to expand to the entire coastline where securing cooling water is easy. The potential construction candidate sites resulting from this are shown in the table below.
Will data center infrastructure in Sweden expand?
The combination of the national AI strategy and the nuclear power roadmap is expected to stimulate the installation of data centers. Sweden is actively pursuing data center infrastructure expansion projects, leveraging its abundant low-carbon energy and Northern European cooling efficiency. The growth of the data center industry is effectively serving as one of the driving forces behind the construction of new nuclear power plants in Sweden.
In February 2026, French company Mistral AI announced plans to invest 12 billion euros to build an AI hub in the central Swedish region of Borlänge, alongside the Eco Data Center. The company plans to incorporate NVIDIA's next-generation Vera Rubin GPUs for world-class efficiency and recycle 100% of the waste heat generated at the data center into nearby district heating systems. The Eco Data Center aims to construct the world's first climate-positive data center. Designed to go beyond simple carbon neutrality to provide environmental benefits, it is emerging as an advanced model for the global data center industry.
The AI startup ecosystem is also growing.
The Swedish government's infrastructure investment is leading to the growth of private startups. As of 2025, the volume of venture capital flowing into Sweden's AI startup sector increased by approximately 35% compared to the previous year.
Sweden Sets Out to Kill Two Birds with One Stone: AI and Energy Transition
Sweden's national AI strategy goes beyond the mere adoption of technology; it is an attempt to secure unrivaled national competitiveness by combining AI with the high digital maturity and social trust characteristic of Northern Europe. In particular, the proactive participation of the Ministry of Climate and Enterprise in placing 'Sustainable AI' at the forefront is interpreted as a determination to lead the global market trend that prioritizes the harmony between the environment and technology. This stance is leading to the expansion of energy infrastructure essential for operating AI data centers, and new nuclear power plant and SMR (Small Modular Reactor) projects are being re-evaluated as key drivers of the AI industry.
Mr. D, an official at AI Sweden, Sweden's national AI center, stated in an interview with the trade office, "The national AI strategy recently announced by the government suggests that Sweden is not merely remaining a powerhouse in AI software, but is launching massive public-private projects that encompass the energy ecosystem supporting it."
Opportunities for our companies to expand into the market are expected to increase significantly, starting with participation in SMR projects.
The Swedish government has introduced unprecedented incentives in the nuclear power sector, increasing the likelihood of active SMR projects within Sweden in the future. This has opened the way for the export of Korean-designed SMR reactor models and key components. In particular, opportunities for joint participation in specialized engineering areas, such as seawater cooling systems and geological surveys, are also promising.
Meanwhile, in addition to SMRs, there is a possibility that life extension projects for aging existing nuclear power plants will be commissioned in the medium term. Currently, six nuclear reactors are operating at a total of three sites in Sweden. The majority have passed 50 years of operation and have reached their critical point. It is understood that large-scale life extension and facility modernization projects will be undertaken to enhance safety and prevent power shortages. A preliminary feasibility study regarding this is currently underway.
The LLM and public sector AI transformation projects promoted by the Swedish government also present opportunities. Efforts are required to approach this market by customizing Korean data security technologies and administrative automation solutions to suit the local market. While Sweden has market entry barriers, partnerships with local companies are open. It would be advisable to target market opportunities through collaboration with local global companies or AI startups.
Finally, as local infrastructure companies, such as eco-data centers, are expanding their investments in low-power cooling and waste heat recycling technologies, it appears necessary to secure market share through technological cooperation in areas such as immersion cooling or AI-based energy management systems (EMS).