Nokia bags data centre networking deal with AI cloud specialist NscaleNokia bags data centre networking deal with AI cloud specialist Nscale

Based in Stavanger in neighbouring Norway, it is powered by 100% renewable energy, and being located somewhere a little on the chilly side, it is – in Nokia's own words – optimised for energy-efficient cooling.

Eco-credentials aside, one of the major strands of Nscale's strategy is to sell access to high performance computing (HPC) infrastructure for AI workloads. It does this primarily via its GPU-as-a-service (GPUaaS) offering.

Under the deal with Nokia, Nscale will deploy the vendor's Ethernet-based data centre fabric, which promises the necessary performance, reliability and scalability to support training and inferencing on large-scale GPU clusters.

"Our mission is to redefine the boundaries of AI and high-performance computing through innovative, sustainable solutions," said Nscale CTO David Power. "Nokia's data centre fabric enables us to scale our GPU clusters while maintaining the reliability and performance needed to serve our customers with cutting-edge AI services. The flexibility of Nokia's solution ensures we can bring advanced AI capabilities to market faster."

Once online, the Stavanger facility will complement Nscale's existing data centre in Glomfjord, which offers 30 MW of operational capacity, expandable to 60 MW. This one is even further north, just inside the Arctic Circle, so presumably it is pretty cheap and easy – relatively speaking – to keep all those servers cool.

Nscale plans to deploy 120 MW of data centre capacity across Europe and the US in 2025 – its ultimate aim is to reach 1.3 GW.

That's a lot. Particularly for a company that currently lists one data centre on its website.

To put that into context, with 1.3 GW of capacity, Nscale would rank sixth in Data Centre Magazine's 2023 run-down of the world's top 10 hyperscalers. It would be ahead of well-established names like Alibaba, Huawei, Tencent and Oracle, and would be nipping at the heels of fifth-placed Apple at 1.5 GW.

Dizzying heights for a company that came out of stealth mode in May.

It received a vote confidence earlier this month though, when it successfully completed a $155 million series A funding round led by Sandton Capital Partners, to help fund its ambitious data centre deployment.

Such is the appetite for AI infrastructure that the funding round was oversubscribed.

"As a hyperscaler, Nscale is already delivering turnkey AI development and deployment solutions to businesses worldwide," said Paul Alexander, VP and country general manager of UK and Ireland at Nokia. "With support from Nokia, the path to accessible and transformative AI innovation has never been easier. By combining advanced Ethernet technology with sustainability, we are helping Nscale deliver world-class AI services while supporting its commitment to renewable energy and environmental responsibility."

Meanwhile, Nokia has also been doing deals a little further from home this week.

Together with SK Broadband, it has deployed a quantum secure leased line network for Korea Hydro and Nuclear Power (KHNP) that is designed to protect it from cyberthreats both old and new – including quantum computing-based attacks.

According to Vedere Labs, the research arm of cybersecurity specialist Forescout Technologies, in 2023 there were 13 cyberattacks per second targeted at critical infrastructure, including the medical, power, communications, waste, manufacturing, and transportation sectors.

Under the deal, Nokia is supplying KHNP with transmission equipment, interconnect routers, service access systems, plus its network services platform, which simplifies network operations and management. The network leverages the IEEE's Media Access Control security (MACsec) protocol, which secures Ethernet-connected devices through encryption and the exchange and verification of security keys.

"Protecting critical infrastructure is a hallmark of quantum-safe technology, and an area we understand well at Nokia," said Jay Han, head of network infrastructure business, Nokia Korea. "Our industry-leading quantum-safe network solutions and proven expertise in delivering high-performance, secure technologies for critical infrastructure operators are helping companies like KHNP safeguard their essential systems to protect against disruptions and attacks caused by cyber threats. We look forward to working with SK Broadband to expand the use of our quantum-safe MACsec cryptographic technology throughout Korea."