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Telenor Expands AWS Partnership Amid Struggles to Foster Local Alternatives

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Norwegian telecom giant Telenor has deepened its collaboration with Amazon Web Services (AWS), signaling a shift away from efforts to promote domestic cloud solutions. This move includes the implementation of AWS’s sovereign-by-design solutions in Telenor’s Skygard data centers.

The Skygard initiative, a joint venture launched in response to Norwegian security authorities’ demand for local data centers to manage sensitive national information, was initially seen as a potential boost for homegrown digital services. Key partners in the project include Hafslund, a local renewable energy firm, HitecVision, an energy-focused investor, and consultancy Analysys Mason.

Construction of the first Skygard site in Hovinbyen, Oslo, began in March, highlighting a strong commitment to national security and sovereignty. This commitment was underscored by the appointment of former Norwegian Communications Authority security director Elise Lindeberg as Skygard’s CEO.

Despite these efforts, Telenor’s recent agreement with AWS suggests a pivot towards leveraging the capabilities of established international providers. Telenor plans to invest NOK100 million ($9.4 million) in the first year to integrate AWS solutions into Skygard.

The company is set to explore AWS’s sovereign-by-design cloud infrastructure for internal workloads, adhering to Norwegian regulatory requirements. This partnership also aims to address the needs of Norwegian enterprise customers by offering solutions focused on sovereignty and security.

Telenor CTO and EVP Amol Phadke expressed optimism about the collaboration, stating that it would drive growth and innovation while supporting Telenor’s sovereign cloud strategy. The partnership extends to Telenor’s operations in Sweden and Finland, with AWS VP Jan Hofmeyr highlighting their shared commitment to modernizing Telenor’s data centers using AWS infrastructure.

While Telenor emphasizes the use of AWS’s sovereign-by-design solutions, the essence remains that AWS continues to dominate the global public cloud market. This partnership appears to reinforce AWS’s position in Norway, aligning with broader trends of reliance on US hyperscalers for critical cloud infrastructure.

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