Nokia sees artificial intelligence as more than another technology upgrade. It views it as a new network super-cycle. That shift could reshape data centres, edge computing, optical networks, and mobile infrastructure.
Paul Alexander, Nokia’s UK Managing Director, says AI delivery depends on physical infrastructure. “If you think about what AI is and how AI actually gets delivered to people, you’re talking about data centres containing large amounts of compute,” he told Mobile Europe.
In simple terms, AI needs three things to scale. It needs data centre space, reliable power, and fast networks. Without that mix, applications may struggle with delay, capacity limits, and rising costs.
Alexander makes the network point clearly. “If you don’t have the network, you can’t transport the data, which is fundamentally what we’re talking about here,” he says.
This creates a strong opening for telecom operators. They already run sites, fibre routes, exchanges, and mobile networks. Many also continue to expand 5G coverage and densify their networks.
At the same time, AI workloads are moving closer to users. Edge computing can reduce delay and improve service quality. It can support enterprise automation, smart cities, and real-time analytics.
However, the model raises major planning questions. Large data centres demand huge amounts of power. A single large facility can require 100MW or more. That makes location, energy price, and sustainability critical factors.
Nokia is also promoting the idea of an “AI grid”. Instead of placing vast computing power in one huge site, operators could spread it across smaller locations. Alexander says this approach can “reduce the risk”.
This idea may suit telecom operators well. Many own buildings and network sites that could gain new value. Some facilities may support smaller edge data centres after upgrades.
Yet distributed AI also needs stronger transport networks. These sites must move data quickly and reliably. Alexander points to “a high-capacity, low-latency optical network” as essential.
The UK has a strong starting point. It already hosts more than 500 data centres. It also has deep telecom experience and a mature enterprise market.
Even so, power remains a central challenge. Nordic countries attract data centre investment with cheaper renewable energy. The UK must improve access to low-cost clean power.
“The issues we need to figure out is: how do we get more low-cost, renewable power?” Alexander asks.
Another key issue is sovereignty. Governments now care where critical systems are built and managed. This includes equipment origin, operations, and data handling.
“Where the equipment is made, how it’s managed, where it’s operated from – all that kind of stuff. Sovereignty is becoming a critical issue,” he explains.
For telecoms, the message is clear. AI growth will not depend only on GPUs or giant data halls. It will rely on networks that link everything together. That may place operators at the centre of the next infrastructure wave.
