Nordic defence fuels building boom

Nordic defence forces are ramping up investment, and it is not limited to high-profile platforms such as fighter aircraft and vehicles.

All four countries are increasing spending on infrastructure, including barracks, according to a survey by Defence Nordic, though the maturity of programmes varies significantly.

After a prolonged period of underinvestment, Finland is accelerating efforts to modernise approximately 3 million square metres of buildings while also undertaking new construction.

- There are two main reasons, says Matias Warsta, chief executive of Defence Properties Finland. 

- First, the change in the security environment. Second, we are procuring a significant number of new weapon systems.

He points to the acquisition of 64 F-35 fighter aircraft and four new corvettes as examples. Together, these programmes require infrastructure investment of up to 700 million euro.

500 million euro 

From 2003 to 2020, Finland spent 1.2 billion euro on defence infrastructure.

While substantial, this falls short of the level of investment now planned, Warsta says.

In 2021, Finland spent 93 million euro on defence infrastructure. This rose to 450 million euro last year. From 2026 through at least 2030, annual spending is expected to reach 500 million euro.

- At the same time as we invest in new equipment, overall defence spending is increasing, so infrastructure must keep pace, he adds.

Finland is not alone. Across the Nordics, infrastructure investment is rising sharply.

Norway’s Defence Estates Agency, Forsvarsbygg, invested 15 billion Norwegian kroner in 2024, equivalent to approximately 1.3 billion euro, according to the latest available figures.

Over time, a maintenance backlog developed within the Norwegian Armed Forces in personnel-related real estate, buildings, and infrastructure.

Thus, Forsvarsbygg has worked to reduce this backlog,  explains acting director, Camilla Mathiesen, in an email.

- We must ensure that existing assets function effectively. Therefore, in the coming years, we will continue to upgrade and maintain barracks and other personnel-related buildings.

Significant efforts have been made to improve accommodation standards, and looking ahead to 2036, Forsvarsbygg will continue to make major investments in infrastructure and buildings, she notes. 

- This is essential both to address the substantial maintenance backlog and to support the planned growth of the Armed Forces, as set out in force structure development and the implementation of the Defence Pledge (Forsvarsløftet).

Forsvarsbygg manages just over 4 million square metres of property, broadly comparable to Sweden. There, infrastructure delivery has increased since 2024, according to the Swedish Fortifications Agency (Fortifikationsverket).

In 2025, total public investment reached 20 billion Swedish kronor, or 1.9 billion euro, an increase of 10 billion Swedish kronor year on year. This is expected to rise slightly in 2026, although the agency notes the figures remain provisional.

The agency estimates investment of 22.7 billion Swedish kronor, or around 2 billion euro, in 2026.

Decades of neglect

In Denmark, the situation appears more acute, with no comprehensive plan yet made public to address longstanding infrastructure deficits.

Danish media report that much of the country’s barracks estate has been neglected for decades. The estate covers approximately 2.6 million square metres, with significant portions in poor condition and associated health risks for personnel.

At the same time, the number of conscripts is increasing by the thousands, adding further pressure on capacity.

So far, just over 2 billion Danish kroner, or 267 million euro, has been allocated, but significantly more funding is likely to be required in the coming years.

The Danish Defence has estimated a requirement of 15 billion Danish kroner, or around 2 billion euro, in 2025, excluding new construction.

In December, the Ministry of Defence awarded a 2.6 billion Danish kroner contract covering the construction of 31 buildings for incoming conscripts under a public-private partnership.

Open for business

In Finland, the baseline is stronger, with 1.2 billion euro invested between 2003 and 2020 underpinning current expansion. (Assumption: “securing a minimum” interpreted as establishing a foundation.)

Defence infrastructure projects are increasingly open to both domestic and international suppliers, Warsta explains.

Until Finland joined NATO, contracts were awarded exclusively to domestic companies. This has now changed.

- Many projects are partly funded by NATO. These must be open to contractors across the alliance, he says.