Key Points from the Nokia-Nscale Pact
Nokia will supply advanced networking solutions, including data center switching, IP routing, and optical networking, enabling high-performance and secure connectivity within and across Nscale’s AI data centers.
Nokia joins Nscale’s Series B investment round, highlighting not just a technology partnership but also financial backing to expand Nscale’s global footprint.
Both companies will jointly develop innovations in the networking stack tailored for large-scale AI clusters, focusing on ultra-low latency and high bandwidth, which are critical for AI workloads.
Strategic Impact and Future Outlook
The pact positions both companies at the forefront of a market expected to grow from $32.98 billion in 2025 to $146.37 billion by 2035, with annual growth rates projected between 17.7% and 31.9%.
Nscale’s ambitious roadmap includes deploying 300,000 NVIDIA GPUs globally and securing major renewable energy-powered AI infrastructure projects, such as a $6.2 billion initiative in Norway. Nokia’s expertise in high-throughput, hyperscale networking will be key to delivering these initiatives efficiently and sustainably.
This partnership addresses major industry challenges: ensuring interoperability, optimizing energy efficiency, and providing scalable capacity in a landscape facing component shortages and rising capital expenditures.
For Nokia, this alliance is part of a broader AI-first strategy that has seen it invest $6.4 billion in AI-driven R&D, restructure operations to prioritize network infrastructure, and expand into new revenue streams such as private 5G and edge computing.
How the Pact Will Play Out
Nscale gains access to Nokia’s global expertise and robust networking portfolio, enabling it to roll out AI clusters faster and more efficiently worldwide.
Both partners will jointly innovate, focusing on future-proofing the network layer for emerging AI workloads and building a competitive edge over rivals reliant on more fragmented or energy-intensive solutions.
Investors and industry stakeholders benefit as the partnership delivers scalable, sustainable solutions while meeting the increasing regulatory and performance demands of the global AI sector.
The Nokia-Nscale pact sets a new benchmark for collaboration in AI infrastructure, providing the technological muscle and financial scale needed to lead the next wave of secure, scalable, and environmentally-friendly AI deployments worldwide.