- Nokia has been chosen to supply networking equipment for Nscale’s new data centre aimed at supporting AI workloads through high-performance computing.
- Nscale plans to expand its AI-focused data centre capacity across Europe and the US, with an ultimate goal of reaching 1.3 GW of capacity.
What happened: Nokia will supply Ethernet-based fabric for Nscale’s new data centre
Nokia has been chosen to supply IP networking equipment for a new data centre by Nscale, a growing AI cloud specialist. The data centre, located in Stavanger, Norway, will be powered entirely by renewable energy and optimized for energy-efficient cooling. Nscale aims to provide high-performance computing (HPC) infrastructure to support AI workloads, particularly through its GPU-as-a-Service (GPUaaS) offering. Under the agreement, Nscale will deploy Nokia’s Ethernet-based data centre fabric to ensure reliable and scalable performance for large GPU clusters. The Stavanger facility will complement Nscale’s existing centre in Glomfjord and is part of its expansion plans across Europe and the US, targeting 120 MW of capacity by 2025. The deal highlights Nscale’s strategy to provide cutting-edge AI services while maintaining a focus on sustainability and innovation in the rapidly growing AI infrastructure sector.
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Why it’s important
This deal between Nokia and Nscale is significant for multiple reasons, primarily because it marks a pivotal development in the growing AI infrastructure market. As AI applications continue to expand, the demand for high-performance computing (HPC) systems capable of supporting complex AI tasks, such as training and inferencing, has surged. Nscale’s focus on providing GPU-as-a-Service (GPUaaS) is crucial for offering scalable AI solutions, which require robust and reliable networking infrastructure, something Nokia can provide with its advanced Ethernet-based data centre fabric.
Nokia’s involvement brings not only technological expertise but also a sustainability angle, with Nscale’s new data centre powered by 100% renewable energy and optimized for energy-efficient cooling. This aligns with the broader industry trend of increasing focus on reducing carbon footprints and meeting environmental goals in data centre operations. Furthermore, Nscale’s ambitious plans to expand its data centre capacity to 1.3 GW by 2025 put it in direct competition with some of the largest players in the hyperscaler market, including Alibaba and Apple. This positions Nokia as a key enabler for companies looking to scale AI solutions while maintaining reliability, sustainability, and cutting-edge performance, a crucial combination in an increasingly AI-driven world.
As AI technologies become more mainstream, such deals also signify the growing importance of cloud infrastructure in driving innovation, with companies like Nokia playing an essential role in shaping the future of this space.
