Nokia announced a 17‑node AI‑ready edge network deal with Telefónica in Spain, adding 12 nodes already deployed and a pilot of three Edge data centers launched in 2024.
The agreement makes Nokia the sole networking technology partner for Telefónica’s expanding Edge network, unifying architecture and simplifying operations across the project.
The deal comes as Nokia reports strong Q4 2024 results, with a 9% increase in net sales and a comparable operating profit of €2.6 billion. The company’s 2025 operating‑profit guidance was lowered to €1.6 billion–€2.1 billion in July 2025 due to currency headwinds, while 2026 guidance remains at €2.0 billion–€2.5 billion. Nokia also completed its 2024 acquisition of Infinera for US$2.3 billion, reinforcing its AI‑data‑center connectivity portfolio.
Telefónica’s chief technology officer, Sergio Sánchez, said, "This initiative fully aligns with our strategy to make Edge Cloud and Artificial Intelligence main cornerstones of Telefónica's growth. Nokia has proven to be a trusted connectivity partner in this mission, and they are playing a critical role in building secure, reliable data center networks for our ambitious Edge node project. Through this effort, we are not only enhancing our digital infrastructure but also reinforcing Spain's technological sovereignty and enabling a more dynamic, user‑centric digital ecosystem."
The contract value was not disclosed, and Telefónica plans to have all 17 nodes operational by the end of 2026. Nokia’s 7220 Interconnect Router and 7750 Service Router are expected to underpin the high‑speed, ultra‑low‑latency connectivity required for AI training and inference, B2B, telco‑cloud, and public‑sector services.
This partnership positions Nokia at the forefront of the AI infrastructure market, expanding its presence in Spain’s rapidly growing data‑center sector and supporting its broader strategy to capture demand from hyperscalers and AI workloads. The deal also aligns with Nokia’s restructuring into two primary operating segments—Network Infrastructure and Mobile Infrastructure—allowing the company to focus resources on high‑growth AI and edge opportunities.
Market reaction to the announcement was tempered by valuation concerns, even as the deal underscores Nokia’s continued focus on AI‑ready edge solutions.
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