Major Infrastructure Projects Drive Swedish Construction Growth Amid Västlänken Disputes

Sweden's construction sector is experiencing a positive trend, largely driven by significant infrastructure projects in Luleå and Borlänge, as well as ongoing major developments such as the Västlänken railway project in Gothenburg. In November 2025, construction starts increased by 1%, signaling a growing momentum in the industry. According to Prognoscentret's senior economist Ludvig Uggla, this growth aligns with the broader economic recovery and the commencement of large projects like steelworks in Luleå and data centers in Borlänge. Investments in construction and maintenance are projected to rise by 6% in real terms by 2026, with infrastructure investments expected to increase by over 50 billion SEK between 2025 and 2028.

The Swedish national transport infrastructure plan for 2026-2037 is fueling these investments, alongside expansions in electricity grids, water and sewage systems, and defense spending. These wide-ranging projects contribute to a robust increase in construction activity, including enhanced railway and road maintenance efforts.

However, the Västlänken railway project faces significant challenges. Trafikverket, the Swedish Transport Administration, has filed a lawsuit against the WLC consortium, comprised of NCC and the German firm Wayss & Freytag, demanding 1.35 billion SEK after terminating their contract for the Korsvägen segment due to alleged deficiencies and escalating costs. WLC has rejected these claims, asserting that Trafikverket's termination represents a serious breach of contract. They are seeking compensation totaling hundreds of millions of SEK for personnel, subcontractor costs, and lost profits, citing environmental rulings that halted night work and delayed the project.

The original completion date for Västlänken was December 2023, but only the Centralen station is expected by that date. The full project's completion has been pushed back to December 2030. Patrick Guné, head of major projects at Trafikverket, expressed frustration over WLC's rising costs, which have increased by nearly 400% since 2018.

This dual picture reflects both the vigor and the complexities within Sweden's construction market, highlighting the sector's critical role in national infrastructure development while underscoring ongoing contractual and logistical challenges in landmark projects like Västlänken.