Nokia Oyj has taken a strategic step to capitalize on the growing demand for data center capacity driven by artificial intelligence (AI). In a $2.3 billion cash-and-stock deal, Nokia has agreed to acquire Infinera Corp., significantly boosting Nokia’s portfolio of networking products for data centers while enhancing its market presence in the United States. This acquisition represents Nokia’s largest since its $16.6 billion purchase of Alcatel-Lucent in 2016.
According to Nokia CEO Pekka Lundmark, the surge in AI is generating substantial investments in data centers, making the acquisition of Infinera particularly compelling. “AI is driving significant investments in data centers at the moment, and one of the key attractions of this acquisition is that it significantly increases our exposure to data centers,” Lundmark stated during a call with reporters.
Infinera is noted for its expertise in “server-to-server communications” within data centers, an area that aligns well with the current technological demands. By augmenting its offerings through this acquisition, Nokia aims to both diversify and strengthen its capabilities in a rapidly expanding market.
For more details, visit the Bloomberg Law article.