Nokia Secures Major Edge Computing Contract with Telefónica

Nokia secures a major multi-year contract to build Telefónica's nationwide edge infrastructure in Spain, enabling low-latency AI and advanced services.

Nokia has been awarded a significant, multi-year contract to serve as the exclusive partner for Telefónica’s nationwide edge infrastructure rollout in Spain. The agreement represents a strategic win for the Finnish network equipment provider, cementing its role in a key growth segment.

A Multi-Year, Multi-Site Infrastructure Project

The partnership calls for the establishment of 17 new edge data center locations across the country. Of these, twelve sites are already operational. This expansive project builds directly upon a successful pilot program conducted in 2024, which initially involved the deployment of three edge data centers.

The core architectural principle is distributed computing. By positioning substantial compute and storage resources closer to the end-user, the network inherently reduces latency—the physical distance data must travel is minimized, leading to faster response times.

Enabling Advanced AI and Network Services

Nokia’s comprehensive role includes providing the internal networking for each individual edge node as well as connecting these nodes to the broader core network. A central feature of the new infrastructure will be its support for artificial intelligence. The edge sites are specifically designed to facilitate both the training and the inference phases of AI models directly at the network's edge, a capability critical for real-time applications.

Telefónica is targeting a diverse client base with this enhanced infrastructure, from consumers and private enterprises to public sector institutions. Sectors such as healthcare, education, industrial manufacturing, and public administration are expected to be primary beneficiaries of the improved network performance and low-latency services.

Strategic Positioning for Both Companies

For Telefónica, this initiative is a cornerstone of its strategy to solidify its position as a leading provider of advanced B2B and telco-cloud services. The deployment aims to offer customers a robust platform for next-generation digital applications.

For Nokia, the exclusive nature of this multi-year agreement provides valuable long-term visibility and revenue predictability within the rapidly expanding edge computing market. The deal underscores Nokia’s competitive strength in supplying end-to-end network solutions for major telecommunications operators.