Nokia executive sees AI driving a 'network super-cycle'
Nokia's UK managing director Paul Alexander argues that AI's growth will create a "network super-cycle" for telecom infrastructure, as data centres and edge computing demand more power and connectivity. He highlights the need for robust networks to transport data, and sees opportunities in connecting base stations and data centres. Nokia is also promoting an "AI grid" concept, distributing computing across smaller sites rather than huge data centres.
The AI grid concept would distribute computing workloads across numerous smaller facilities rather than concentrating them in massive data centres. This approach could let telecom operators repurpose existing buildings and sites for edge computing, while creating demand for high-capacity optical networks to link distributed locations.
The UK currently hosts more than 500 data centres, yet faces challenges around affordable renewable power. Alexander points to Nordic nations as examples where abundant clean energy attracts data infrastructure investment, suggesting the UK's competitiveness depends on addressing its power generation and distribution constraints.
The shift toward distributed AI infrastructure could reshape how communities access digital services, potentially bringing computing closer to users and reducing latency for applications like autonomous vehicles or remote healthcare. However, the emphasis on low-cost power may concentrate investment in regions with cheap energy, leaving other areas behind. Telecom operators could gain new revenue streams, but consumers may ultimately bear infrastructure costs through service pricing.