Nokia secures exclusive deal with Telefonica to power AI data centres across Spain

Nokia Secures Exclusive Multi-Year Contract for Telefonica's Edge Network

Nokia has landed a significant multi-year contract with Telefonica to deploy advanced networking solutions across the telecom giant's expanding Edge data centers throughout Spain 1

1

. The Finnish technology company will serve as the exclusive provider of connectivity infrastructure for 17 Edge sites, with 12 already in operation, including Telefonica's prominent Tecno-Alcalá facility 2

2

. This partnership marks a strategic move for both companies as AI data centres emerge as critical infrastructure for next-generation digital services.

The deal highlights how AI-driven infrastructure is creating new revenue streams for Nokia, which continues to rely heavily on its 5G networks business 1

1

. For Telefonica, the collaboration represents a pivotal step in enhancing its digital infrastructure to support growing demand for AI workloads and cloud services across multiple sectors.

High-Speed Infrastructure Designed for AI Workloads and Critical Services

The deployment centers on building a high-speed, low-latency network specifically designed to handle demanding AI training processes and essential digital services in healthcare, education, and industry 1

1

. Nokia's technology will enable Telefonica to deliver artificial intelligence, B2B, and Telco Cloud services to residential, enterprise, and public sector customers 1

1

.

Nokia's involvement underscores its leadership in AI-ready data center networking, with the company deploying its 7220 Interconnect Router and 7750 Service Router to enable automation and multi-cloud integration 2

2

. These solutions are engineered to meet the increasing demands of AI workloads globally, positioning both companies to capitalize on the surge in computational requirements driven by AI applications.

Strategic Positioning in Spain's Expanding Data Centre Market

The partnership comes as Spain emerges as a rapidly expanding data centre market in Europe, with major players like Blackstone and Amazon planning multi-billion dollar investments in the sector 1

1

. This initiative supports a nationwide distributed Edge architecture in Spain, emphasizing data sovereignty and innovation 2

2

.

The collaboration reflects a strategic alignment to advance Edge Cloud and AI as key growth areas for Telefonica 2

2

. By positioning Nokia as the exclusive networking technology provider, the partnership simplifies operations and enhances efficiency across Telefonica's infrastructure. The project highlights Nokia's role as a trusted partner in building secure and reliable data center networks capable of supporting next-generation connectivity demands.

The strategic partnership was also revealed to bring agentic AI capabilities to live 5G networks, aiming to enhance telecommunication providers' ability to deliver premium services precisely when and where they are needed 2

2

. This positions both companies to capitalize on the convergence of edge computing, AI, and telecommunications infrastructure as businesses increasingly require low-latency processing for real-time applications.