AGP Executive Report

Data Centres & Cybersecurity: Iceland’s data-centre industry is urging the government to treat data centres as critical infrastructure to boost digital independence, resilience and cybersecurity, with Borealis Data Center CEO Björn Brynjúlfsson calling for investment in connectivity, power networks and clearer rules. Hydropower Build-Out: Ístak (Aarsleff Group) won a contract to expand Iceland’s Sigalda hydropower plant by adding a 65MW unit, lifting capacity from 150MW to 215MW; construction starts late summer 2026 and is due in 2029. Digital Infrastructure Finance: A broader push for AI infrastructure continues as CPPIB backs EQT’s data-centre buildout with a $2.4bn investment, highlighting how long-term capital is flowing into the physical backbone of AI. Trade & Market Access: EFTA and Vietnam have concluded a free-trade deal, paving the way for closer trade with Iceland, Norway, Switzerland and Liechtenstein. Labour Shortages: Europe’s skills gap remains stubborn, with construction-related electricians and plumbers/pipe fitters among the most shortage-hit occupations. Logistics Links: My Freighter (Centrum Holding) signed interline agreements with Air Canada Cargo and Singapore Airlines Cargo to expand cargo connectivity across North America, Asia-Pacific and Europe.

Digital Infrastructure & Cybersecurity: Iceland’s data centre industry is urging the government to treat data centres as critical infrastructure to boost digital independence, resilience, and cybersecurity, while also calling for more investment in connectivity, electricity networks, and clearer rules. Data Centres Expansion: Verne Global secured $93m from Digital 9 Infrastructure to add a new 8.2MW data hall and expand capacity on its Keflavík campus, pushing total available capacity to 40MW. AI Infrastructure Investment: CPPIB is investing $2.4bn with EQT to build AI data centres via EdgeConneX, highlighting the long-term demand behind Iceland’s growing digital sector. Labour Shortages: Europe’s labour shortage report flags construction trades—especially electricians and plumbers—as among the most affected, underlining ongoing skills pressure for Iceland’s building and engineering pipeline. Trade & Markets: EFTA and Vietnam concluded a free trade deal that includes Iceland, potentially improving services, investment, procurement, and sustainable development links. Logistics Connectivity: My Freighter (Centrum) signed interline agreements with Air Canada Cargo and Singapore Airlines Cargo to strengthen cargo corridors between Central Asia, North America, and Europe. Border Tech Impact: EU leaders admit the Entry/Exit System still needs work after it caused major air-travel delays; Iceland is part of the Schengen area covered by the system.

Iceland–EFTA Trade: EFTA and Vietnam have wrapped up a free trade agreement after talks resumed in 2025, with Iceland among the four EFTA states. The deal is set to cut barriers and cover services, investment, procurement, IP and sustainable development. Data Infrastructure: Verne Global says it will expand its Iceland data centre campus after securing $93m from Digital 9 Infrastructure, adding an 8.2MW hall and reconfiguring space for another 12.5MW, powered by local renewables. Energy & Nature Protection: Iceland’s Grótta Nature Reserve has been expanded to include the Seltjörn lagoon, strengthening protection for birdlife and intertidal/shallow marine habitats around Reykjavík. Geothermal Push: A geothermal-focused exhibition opened in Taiwan, highlighting geothermal’s role in science, energy development and industrial applications. Mining & Finance Watch: Amaroq updates its plan to move from London’s AIM to the Main Market, with admission expected no earlier than late July 2026. Circular Fashion: Sweden’s Kappahl agrees to buy a majority stake in secondhand retailer Arkivet, scaling resale operations across the Nordics.

Data Centres & Digital Infrastructure: Verne Global will expand its Iceland campus after securing $93m from Digital 9 Infrastructure, adding a new 8.2MW data hall plus 12.5MW of reconfigured capacity, pushing the site to 40MW total. Renewables & Power Markets: Downing has completed its acquisition of three hydropower plants in Northern Finland, adding to its Nordic renewables portfolio that already includes assets in Iceland. Environment & Coastal Protection: Iceland’s Grótta Nature Reserve has been expanded to cover the entire Seltjörn lagoon, aiming to better protect birdlife and sensitive intertidal marine habitats. Climate & Energy Tech: A geothermal-focused piece highlights the push to drill deeper for superhot rock, with the World Geothermal Congress spotlighting new approaches to unlock firm clean power. Trade & Business Links: EFTA and Vietnam signed a free trade agreement in Reykjavik to cut customs duties and cover goods/services, investment, IP, and procurement. Travel & Border Tech: Europe’s Entry/Exit System is causing summer delays as biometric checks roll out across Schengen borders, including Iceland. Consumer & Wellness Imports: Liquid I.V. is expanding across Europe into Spain, Germany, France, Sweden and Iceland, extending its powdered hydration push.

Ukraine Energy Dealmaking: At the Ukraine Recovery Conference in Gdańsk, the energy sector secured 28 agreements worth nearly EUR 2bn, with partners also pledging fresh support for winter readiness and the Ukraine Energy Support Fund. Iceland Biotech Finance: Alvotech amended its credit agreement for an extra up to $75m term loan, adding to a recent $165m equity raise and bringing total new capital access to $240m to push biosimilar R&D and launches. Iceland Labour & Wages: Iceland’s wage statistics show real pay gains across public and private sectors since the 2024 bargaining round, with purchasing power up even as growth slows. Iceland Industry & Energy Research: A guest piece argues next-generation geothermal is entering a growth phase, with accelerating drilling and a rising demand for high-temperature directional drilling services. EU Travel Tech Pressure: Europe’s airports and airlines renewed calls to curb summer disruption from the EES digital border checks, which include Iceland in the Schengen coverage. Pharma Expansion to Iceland: SERB Pharmaceuticals completed rights acquisition for Idefirix (imlifidase) covering the EU plus Iceland and MENA, aiming to expand access for rare transplant-related needs.

Nordic-Baltic Security Push: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden issued a joint statement backing stronger Nordic-Baltic cooperation on security and defence, resilience and competitiveness, with renewed emphasis on sustained support for Ukraine and ramping up pressure on Russia. Iceland Wages Update: Iceland’s Wage Statistics Committee reports real wage gains across public and private sectors since the 2024 bargaining round, with purchasing power up even as inflation stayed stickier than expected. Biotech Financing: Alvotech secured up to $75m in new term-loan funding after a $165m equity raise, aiming to advance its biosimilar R&D pipeline and global product launches. Pharma Rights Deal: SERB Pharmaceuticals completed acquisition of EU/UK/NO/IS and MENA exclusive development and commercialization rights to Idefirix (imlifidase), expanding access for rare transplant-related needs. Travel Tech Pressure: European airports and airlines warned that the EU’s Entry/Exit System (EES) is driving summer border delays, affecting Schengen travel that includes Iceland. Whaling Watch: Iceland’s commercial whaling hunt has restarted after a pause, with campaigners alleging animal welfare violations and calling for a full whaling ban. Geothermal Industry Signal: A guest editorial argues next-generation geothermal drilling is accelerating and needs high-temperature directional drilling capacity to scale globally.

Biotech Finance: Alvotech (Reykjavik) secured a $75m term loan to strengthen liquidity after a $165m equity raise, giving it access to $240m total for biosimilar R&D, launches and global commercialization. Crypto Regulation: With the EU’s MiCA transition ending July 1, many crypto firms face losing EU authorization; the squeeze is already pushing activity toward Dubai’s lighter licensing. Aviation & Air Traffic: SESAR JU added Avinor, Nav Canada, Tern Systems and Unifly to expand next-gen air traffic management collaboration, including Iceland and Norway participation. Defense & Industry: NATO chief Mark Rutte urged allies to deliver on spending pledges and ramp up defense industrial production ahead of the Ankara summit, with Türkiye highlighted as a major defense hub. Arctic/Infrastructure Security: Coverage warns Russia’s Arctic-focused fleet and doctrine are increasingly pressuring the North Atlantic and critical infrastructure around Scotland and the North Sea. Sustainable Tech: Canada’s Deep Sky delivered verified direct air capture carbon removal credits to Microsoft and RBC, pointing to growing demand for delivered (not just planned) climate removals. Whaling Watch: Iceland’s renewed commercial whaling is drawing renewed scrutiny over animal welfare violations and calls for a legislative ban.

MiCA Deadline Shock: EU crypto rules hit July 1, pushing many unauthorized firms to migrate to the UAE as licensing squeezes the market. Iceland Whaling Under Scrutiny: Iceland’s renewed commercial hunt is drawing fresh animal-welfare complaints, with campaigners documenting alleged violations at sea. UK Defense Spending Debate: Doug Beattie argues the UK’s planned military boost isn’t fast or big enough, while Sinn Fein criticizes the push for “weapons of war.” Cruise Impact in North Iceland: Smaller northeast ports report sharp drops in cruise calls after a new passenger infrastructure charge, with knock-on effects for local businesses. Carbon Removal Deal: Canada’s Deep Sky says it delivered verified direct air capture credits to Microsoft and RBC, noting Climeworks’ Iceland DAC as the benchmark. Travel Demand for Solar Eclipses: A survey finds strong interest in eclipse cruises, with Iceland among the top predicted viewing regions for August 12, 2026. Geothermal & Energy Education: Reykjavik University and Southern Utah University sign an agreement to expand energy education and research. Airline Network Growth: LOT Polish Airlines posts record 2025 profit and passenger numbers, adding routes including Reykjavik. EU Entry/Exit System Prep: Travelers heading to Schengen this summer are urged to prepare for the new EES checks, which also apply to Iceland.

Cruise Shock in North Iceland: Smaller ports in northeast Iceland are seeing a sharp drop in cruise calls, with some losing all scheduled visits after a new ISK 2,500 per-night cruise passenger infrastructure charge introduced in 2025—operators say the timing left cruise lines no room to adjust itineraries, hitting local museums, restaurants and tours first. Carbon Removal Deal (DAC): Canada’s Deep Sky says it delivered verified direct air capture carbon removal credits to Microsoft and Royal Bank of Canada; it notes Iceland’s Climeworks is the only other DAC credit producer so far, while DAC remains expensive and hard to scale. Geothermal & Industry Tech: Syntholene reports construction progress on an integrated geothermal-SOEC synthetic fuel facility in Iceland, using geothermal heat to support the next phase of operations. Rare Earth Mining (Greenland): Amaroq began drilling at the Ilua rare earth project in South Greenland, targeting pegmatite-hosted REEs with coastal access and results from 2025 surface sampling. Crypto Regulation (EU/MiCA): With MiCA’s transition ending July 1, many EU-registered crypto firms face losing authorization; only a small share reportedly secured MiCA licenses, raising the risk of market contraction. Healthcare Rules (EU): A guide explains how cross-border healthcare works in Europe—who can use it, what costs are covered, and when prior authorization applies.

Cruise Shock in North Iceland: Smaller ports in northeast Iceland are seeing a sharp drop in cruise calls, with some communities losing all scheduled visits after a cruise passenger infrastructure charge introduced with too little notice for operators to adjust. Carbon Removal Deal: Canada’s Deep Sky says it has delivered verified direct air capture carbon removal credits to Microsoft and RBC—highlighting that Iceland’s Climeworks remains the only other DAC credit producer. Crypto Compliance Deadline: Europe’s MiCA transition ends July 1, and reporting suggests most registered crypto firms may lose authorization if they haven’t secured MiCA licenses—raising compliance pressure across Iceland and the wider EEA. Rare Earth Drilling in Greenland: Amaroq reports drilling has started at the Ilua rare earth project in South Greenland, targeting pegmatite-hosted REEs with high-grade surface results. Geothermal & Industry Signals: Iceland-linked geothermal developments continue to draw attention, including new geothermal-SOEC/synthetic fuel buildouts and geothermal education research partnerships. Local Tech in Agriculture: A Þorlákshöfn golf course is trialling a fertiliser-spreading drone to cut costs and reach areas conventional machinery can’t.

Rare Earth Drilling in Greenland: Amaroq says drilling has started at the Ilua rare earth project in South Greenland, targeting pegmatite-hosted REEs with 2025 surface sampling up to 2.3% TREO and plans to test three targets over a 5km strike. Whaling Returns in Iceland: Iceland has resumed commercial whaling after a two-year pause, with two fin whales reported killed in the first days of the 2026 hunt, drawing criticism from conservation groups. Iceland’s Telecom Upgrade: Iceland becomes the first European country to switch off 2G and 3G networks, a major step for telecom modernization. Geothermal & Industry Momentum: Iceland’s geothermal sector keeps moving—Ormat is pushing standardization, and new geothermal developments and power deals underline growing investment interest. Local Tech in Agriculture: A Þorlákshöfn golf course is using a fertiliser-spreading drone to cut costs and reach areas conventional machinery can’t, with added use for land restoration. Iceland Arts & Culture: The Icelandic National Opera has appointed six singers for its first full season, and the National Gallery is hosting major Björk-related exhibitions blending music, craft, performance and tech.

Whaling Restart: Iceland has resumed commercial whaling after a two-year pause, with two fin whales killed off the coast in the first days of the hunt—sparking fresh criticism from conservation groups. Arctic Energy Innovation: A new analysis says hydrokinetic turbines on Arctic rivers could help remote communities cut diesel dependence, lowering costs and pollution without needing dams. Geothermal & Industry: Iceland’s geothermal push continues with new projects and deals in the wider sector, including Borealis’ 12MW PPA with Landsvirkjun and ongoing geothermal reporting standardization efforts. National Culture & Jobs: Iceland’s newly established National Opera has appointed six singers ahead of its first full season, with Verdi’s Falstaff planned for 2027. Food & Health: A roundup highlights omega-3 sources beyond salmon, while the broader theme is how Iceland-linked food culture keeps intersecting with nutrition trends. Tourism Pressure: Iceland’s tourism ecosystem remains in focus as “cool-cation” travel demand lifts interest in Nordic destinations like Iceland.

Geothermal & Energy: Iceland’s geothermal push gets a boost as Syntholene completes an integrated geothermal-SOEC facility and starts operations, aiming to cut eSAF costs and support aviation decarbonisation. Geothermal & Industry: Ormat bets on standardization in the geothermal race, while a new 100 MW geothermal project clears a key hurdle in Iceland—signals that “baseload” renewables are moving from pilots to scale. Local Business & Culture: Iceland’s National Opera appoints six singers for its first full season, with Verdi’s Falstaff set for March 2027—an early win for the country’s performing-arts industry. Tourism Trends: Iceland is riding the “cool-cation” wave as travellers seek relief from extreme heat, with puffin-focused excursions in Vestmannaeyjar highlighting demand for nature-led experiences. Food & Trade: India launches its first-ever mango promotion events in Iceland (Reykjavik and Akureyri) to grow premium fruit exports. Arctic Policy: A new analysis argues Arctic rivers could power hydrokinetic turbines to cut diesel dependence in remote communities—relevant for Iceland’s wider North Atlantic energy discussions. Shipping & Risk: A spaceport plan to dump rocket debris into the sea north of Shetland raises alarms for tourism and fishing, underscoring marine safety pressures across the region.

Geothermal & Clean Tech: Fervo Energy’s IPO surged after raising about $1.89bn, betting AI-driven power demand can be met with enhanced geothermal in places beyond “geologically blessed” regions like Iceland. Arts & Culture: Iceland’s National Opera has appointed six singers for its first full season (2026–27), with Verdi’s Falstaff set for a March 2027 premiere. Iceland Business & Trade: India held its first-ever mango promotion events in Reykjavik and Akureyri to boost exports of Dasheri, Chausa, Langra and Kesar, pointing to trade opportunities under the India–EFTA deal. Energy Security (Iceland-linked): At URC2026 in Gdansk, partners pledged major funding for Ukraine’s winter energy prep; Iceland is listed among contributors with €550k. Textiles: ITM 2026 (Istanbul) drew 48,257 professional visitors from 105 countries, underlining global demand for textile machinery. Aquaculture (policy): Jonesport, Maine scheduled a hearing on a 30-month extension for a $110m kingfish aquaculture project after court delays. Arctic Industry & Power: A study suggests hydrokinetic turbines on Arctic rivers could reduce diesel dependence for remote communities.

Textile & Trade: ITM 2026 (International Textile Machinery Exhibition) wrapped in Istanbul with 1,000+ exhibitors from 59 countries and 48,257 professional visitors from 105 countries, underlining how visa and travel access can make or break global dealmaking. Geothermal & Energy Skills: Reykjavik University and Southern Utah University signed an agreement on energy education and research, while Ormat highlighted geothermal standardization efforts and a new 100 MW geothermal project cleared a key hurdle in Iceland. Food Exports: India held its first-ever mango promotion events in Reykjavik and Akureyri to boost agricultural exports, leveraging the India-EFTA TEPA trade framework. Arctic Power: A new analysis argues hydrokinetic turbines on Arctic rivers could cut diesel dependence for remote communities—no dam needed. Medicines: Acadia’s DAYBU (trofinetide) won a positive CHMP opinion in the EU for Rett syndrome neurobehavioral symptoms, pending final European Commission approval. Local Industry Watch: Moguntia Food Group plans to stop trading at its Market Harborough site at month-end, putting a long-running UK manufacturing presence in question. Culture & Craft: The National Gallery of Iceland opened Björk-themed exhibitions blending masks, immersive audiovisual installations, and a new work tied to her upcoming album.

Geothermal Push: Iceland’s Bolaalda geothermal project cleared a key hurdle as Alþingi placed it in the utilisation category, letting Reykjavik Geothermal move into detailed planning, impact assessment, zoning and further drilling for up to 100 MW electricity and 133 MWth heat. Energy Tech & Markets: Ormat says it’s betting on surface power standardisation with its Ormega100 launch (up to 100 MW gross) as geothermal developers race to meet rising demand. Geothermal Beyond Iceland: A new look at Central Europe argues geothermal could be a major heating solution, helped by the Pannonian Basin geology and existing district heating networks. Local Industry Links: Reykjavik University and Southern Utah University signed an MoU to expand sustainable energy education, research and workforce development via the Iceland School of Energy. Trade & Food Exports: India held its first mango promotion events in Iceland (Reykjavik and Akureyri) to boost exports of Dasheri, Chausa, Langra and Kesar, supported by EFTA trade talks. Mobile Networks: Iceland became the first European country to fully shut down 2G and 3G, with an emergency-call risk flagged for some older/foreign phones. Sustainability Data: EU/EEA provisional figures show average CO2 from new cars and vans fell in 2025, driven by higher shares of battery-electric vehicles, with Iceland among the highest EV fleet shares.