The Strategic Shift in Data Center Modernization: Why Now is the Time to Invest in Automation and AI-Ready Infrastructure

The global infrastructure landscape is undergoing a seismic shift, driven by the urgent need to scale AI workloads and automate operations in an era of surging data demands. Investors who recognize this transformation are positioning themselves to capitalize on a market where AI-ready infrastructure is no longer a luxury but a necessity. At the forefront of this movement is the iWay-Nokia-Kyndryl partnership, a case study in how strategic alliances are redefining scalability, efficiency, and future-proofing for enterprises.

The AI Readiness Gap and the Need for Modernization

According to Kyndryl’s 2025 People Readiness Report, , . This stark underutilization highlights a critical gap in enterprise readiness. Meanwhile, . The disconnect between ambition and execution underscores the urgency for infrastructure modernization.

Kyndryl’s , designed to scale across complex IT environments while maintaining human oversight, is a direct response to this gap. By integrating self-learning algorithms and secure-by-design principles, the framework enables enterprises to automate repetitive tasks, optimize resource allocation, and accelerate innovation [1]. The collaboration with iWay and Nokia demonstrates how this framework can be operationalized at scale.

The Case Study: A Blueprint for Scalability

Swiss telecom provider iWay has partnered with Nokia and Kyndryl to modernize its data center infrastructure, leveraging Nokia’s Data Center Fabric (DCF) and Event-Driven Automation (EDA) platforms alongside Kyndryl’s end-to-end network management services [2]. This collaboration has enabled iWay to fully automate its data center environment, reducing human error, streamlining feature rollouts, and enhancing security. , .

This initiative aligns with Kyndryl’s Readiness Report, which emphasizes the importance of AI in infrastructure modernization. For iWay, the partnership is not just about efficiency—it’s about future-proofing. As AI workloads grow, the ability to scale infrastructure dynamically becomes a competitive advantage. The success of this project in Zurich, following a lab proof-of-concept, signals a replicable model for other enterprises seeking to adopt AI-ready infrastructure [2].

’s Strategic Realignment and Financial Performance

Nokia’s Q2 2025 financial results highlight its strategic pivot toward AI and network infrastructure. , , . In contrast, , .

This realignment is paying off. Nokia’s EDA platform and optical networking capabilities are central to supporting high-capacity, low-latency AI environments [3]. The company’s collaboration with Kyndryl has further validated its AI infrastructure strategy, enabling seamless integration of edge computing and private 5G into enterprise ecosystems [3]. Despite downward profit guidance due to currency volatility and U.S. tariffs, .

The Compounding Growth Potential in

The market for AI-ready infrastructure is expanding rapidly, particularly in regions like France, where enterprises are investing heavily in sovereign cloud solutions to support AI deployment [4]. Companies like Hoonartek are also emerging with tailored MLOps and data monetization tools, signaling a broader ecosystem shift [4].

For investors, the compounding growth potential lies in firms that bridge the gap between AI ambition and infrastructure execution. Kyndryl’s expanded partnership with Nokia to offer advanced data center solutions is a prime example. By 2025, their joint offerings have already demonstrated success in real-world scenarios, such as iWay’s automated data center [2]. As telecom and enterprise leaders prioritize AI integration, the demand for scalable, secure, and automated infrastructure will only accelerate.

Conclusion: A Call to Action for Investors

The iWay-Nokia-Kyndryl partnership exemplifies how strategic alliances can drive infrastructure modernization in the AI era. With Kyndryl’s Readiness Report underscoring the urgency of AI adoption and Nokia’s financials reflecting a successful pivot to AI-ready solutions, the case for investment is compelling.

Now is the time to act. The companies enabling this transformation—those providing automation platforms, secure networking, and AI integration—are poised for sustained growth. As the 2025 Infrastructure Technology Predictions suggest, AI-driven automation and optical transport will define the next phase of digital transformation [5]. Investors who align with this trajectory will not only ride the wave of innovation but also secure long-term value in a rapidly evolving market.

Source:
[1] Kyndryl Unveils Agentic AI Framework [https://investors.kyndryl.com/news-releases/news-release-details/kyndryl-unveils-agentic-ai-framework-dynamically-evolves-drive/]
[2] Kyndryl to Automate Data Center Infrastructure for iWay [https://www.kyndryl.com/in/en/about-us/news/2025/09/automate-data-infrastructure-iway-nokia]
[3] Nokia Shifts Focus to AI and Network Infrastructure [https://tecknexus.com/nokia-shifts-focus-to-ai-and-network-infrastructure/]
[4] MLOps and AI-Driven Data Monetization [https://apacnewsnetwork.com/2024/12/mlops-and-ai-driven-data-monetization-are-poised-to-disrupt-indian-business-models-peeyoosh-pandey-ceo-hoonartek/]
[5] 2025 Infrastructure Technology Predictions [https://nextgeninfra.io/2025-predictions/]