Nokia's Strategic Investment in Nscale and the Future of Edge Computing

In 2025, Nokia's strategic investment in Nscale marks a pivotal moment in the evolution of AI-driven edge computing. By securing a stake in Nscale's record-breaking $1.1 billion Series B funding round and becoming a preferred networking partner, Nokia is positioning itself at the intersection of 5G infrastructure and next-generation AI ecosystems. This partnership not only underscores the growing demand for scalable, energy-efficient data centers but also highlights the critical role of advanced networking solutions in enabling real-time AI workloads.

A Synergistic Partnership for AI-Ready Infrastructure

Nscale's AI-native platform, combined with Nokia's expertise in IP and optical networking, is designed to address the dual challenges of performance and sustainability in AI infrastructure. According to a report by Nokia, the collaboration will deploy solutions such as the 7220 IXR and 7750 SR platforms to support AI workloads at Nscale's sustainable data center in Stavanger, Norway. This facility, powered entirely by renewable energy, exemplifies the industry's shift toward green computing while enabling services like GPU as a Service (GPUaaS) Nokia building IP network to support AI workloads at Nscale’s new sustainable data center^[2].

The partnership's focus on secure, high-performance connectivity aligns with broader market trends. As enterprises increasingly adopt edge computing to reduce latency and cloud dependency, the integration of Nokia's data center switching and optical networking technologies ensures seamless automation and adaptability across distributed AI clusters 5G Edge Computing Market Share, Market Size, Trend 2025-2035^[3]. This is particularly critical for industries like healthcare and manufacturing, where real-time analytics and predictive maintenance require ultra-reliable infrastructure Nokia study reveals surge of ROI and AI-enabled use cases with on-premise edge and private wireless^[1].

5G and Edge Computing: A Catalyst for Market Growth

The 5G edge computing market is projected to grow at a staggering compound annual growth rate (CAGR) of 39.78%, expanding from $4.89 billion in 2024 to $194.63 billion by 2035 5G Edge Computing Market Share, Market Size, Trend 2025-2035^[3]. Nokia's leadership in this space is evident in its cloud-native 5G core network solutions, which enable operators to deploy 2/3/4/5G and IMS cores in automated environments. This capability is further amplified by partnerships like the one with Kyndryl, where private 5G networks are combined with edge computing to enhance industrial operations Nokia building IP network to support AI workloads at Nscale’s new sustainable data center^[2].

The integration of 5G and edge computing is not just a technological shift but a financial imperative. A Nokia study reveals that 87% of enterprises adopting on-premise edge and private wireless networks achieve ROI within a year, while 94% report reduced operational costs and carbon emissions Nokia study reveals surge of ROI and AI-enabled use cases with on-premise edge and private wireless^[1]. These metrics underscore the economic and environmental benefits of edge infrastructure, which are driving adoption across sectors.

Long-Term Growth Potential and Challenges

While the market outlook is optimistic, challenges such as high initial investment costs and standardization issues persist Nokia building IP network to support AI workloads at Nscale’s new sustainable data center^[2]. However, Nokia's strategic alliances with industry leaders like NVIDIA and Dell, along with Nscale's global expansion plans, suggest a robust ecosystem capable of overcoming these barriers. The company's recent recognition as a Leader in the 2025 Gartner® Magic Quadrant™ for Communication Service Provider 5G Core Network Infrastructure Solutions further solidifies its competitive edge Nokia study reveals surge of ROI and AI-enabled use cases with on-premise edge and private wireless^[1].

For investors, the convergence of 5G, edge computing, and AI presents a compelling opportunity. Nokia's role in enabling Nscale's AI-native infrastructure, coupled with its advancements in private 5G networks, positions it to capitalize on the projected $150 billion edge computing market by 2033 Nokia building IP network to support AI workloads at Nscale’s new sustainable data center^[2]. As enterprises prioritize low-latency applications and sustainability, the demand for solutions like those offered by Nokia and Nscale will only intensify.

Conclusion

Nokia's investment in Nscale is more than a financial move—it is a strategic alignment with the future of AI and edge computing. By leveraging its networking expertise to enhance Nscale's AI-ready data centers and sustainable infrastructure, Nokia is addressing the core needs of a market poised for exponential growth. For long-term investors, this partnership represents a high-conviction bet on the transformative power of 5G and edge ecosystems, where technological innovation and environmental stewardship converge.