Nokia: outdated networks ‘threaten Europe’s AI future’

Nokia has highlighted significant network performance gaps across Europe, warning that inadequate infrastructure could hinder AI adoption and push workloads offshore, prompting calls for urgent industry and policy coordination.

Nokia has warned that “AI is too big for the European internet,” arguing that the rapid spread of artificial intelligence across enterprises is already outstripping the capacity and architecture of today’s networks and demanding coordinated action from governments, telecoms and businesses. The company’s commissioned study found that around two in three organisations have AI in live use or running pilots, and that more than half of respondents are already seeing latency, downtime or throughput constraints linked to rising AI and data traffic. According to the report by Nokia, 86% of European enterprises believe current networks are not fit for widespread AI adoption,while 88% of US firms and operators share similar concerns. ^[1][2]

Nokia’s chief technology officer and chief AI officer, Pallavi Mahajan, said the findings point to a “clear understanding across the ecosystem that future waves will demand more advanced, AI-native networks and substantial investment to strengthen network requirements.” The study highlights not only performance shortfalls but also policy and supply issues,with nearly one-third of European enterprise leaders fearing that infrastructure limits could force workloads offshore at a moment when many are attempting to repatriate data and services. According to the Nokia report,this raises sovereignty as well as resilience questions for national and regional digital strategies. ^[1][2]

Industry moves already under way underline Nokia’s argument that concerted investment and collaboration will be necessary. At Mobile World Congress 2025, Nokia and partners including KDDI, SoftBank Corp., T‑Mobile US and NVIDIA announced the creation of an AI‑RAN Centre in Dallas to accelerate development and real‑world testing of AI‑driven radio access network technology,and to begin laying foundations for platform‑as‑a‑service business models that pair connectivity with scalable computing for AI workloads. According to Nokia, those kinds of operator–vendor partnerships are intended to prove concepts that can be scaled globally. ^[3]

Nokia’s corporate strategy and spending plans now reflect that market diagnosis. The company has committed to large-scale investments and a reorganisation geared to monetise AI and next‑generation networks; Reuters reported a $4 billion investment planned for the United States focused on AI‑driven network connectivity,splitting $3.5 billion for R&D and $500 million for manufacturing and capex in states including Texas, New Jersey and Pennsylvania. Separately, Nokia announced a refreshed long‑term profit target tied to an AI‑driven strategy and a business structure designed to accelerate development in AI and 6G technologies. The company said the repositioning is intended to capture growth from AI workloads and higher‑value network services. ^[4][5]

Financial results this year provide some validation for Nokia’s pivot. Reuters coverage shows Nokia beat third‑quarter estimates on demand for optical and cloud solutions, sectors that feed AI‑centric data centres, after its acquisition of Infinera,with AI and cloud customers representing a growing share of sales. Nokia also continues to sign major network modernisation deals in Europe; the company secured a four‑year renewal to supply 5G radio access networks and managed services in Denmark,committing to AI and automation to boost capacity, efficiency and reliability for millions of subscribers. Those contracts bolster the case that operators are beginning to invest to accommodate emerging AI traffic patterns. ^[7][6]

Despite these signals, Nokia’s call for cross‑industry action emphasises that vendor investment alone will not suffice. The company and its study participants press for regulatory simplification,timely spectrum availability,and coordinated investment in energy‑efficient, AI‑ready infrastructure to capture the benefits of the AI supercycle while containing costs and carbon impact. According to the report by Nokia, achieving low‑latency,bidirectional connectivity at scale will require policy,capital and operational alignment between governments,telcos and enterprises. ^[2]

If left unaddressed, the study warns,the mismatch between AI demand and network capability could throttle innovation and force strategic shifts in where companies host critical workloads. Nokia’s message is both a technical diagnosis and an appeal for joint action: upgrade networks now,align policy to speed deployment,and share the burden across public and private sectors to avoid fragmentation and dependency risks as AI becomes a pervasive part of digital infrastructure. ^[1][2][4]

📌 Reference Map:

##Reference Map:

• ^[1] (TechRadar) – Paragraph 1, Paragraph 2, Paragraph 7
• ^[2] (Nokia newsroom/study) – Paragraph 1, Paragraph 2, Paragraph 6, Paragraph 7
• ^[3] (Nokia MWC25 release) – Paragraph 3
• ^[4] (Reuters) – Paragraph 4, Paragraph 7
• ^[5] (Reuters) – Paragraph 4
• ^[6] (EuropaWire press release) – Paragraph 5
• ^[7] (Reuters earnings coverage) – Paragraph 5

Source: Fuse Wire Services