Nokia and Converge deploy AI-powered data center fabric to modernize Philippines’ cloud infrastructure

Nokia Corporation (NYSE: NOK) has announced a strategic collaboration with Converge ICT Solutions Inc. to deploy its advanced Data Center Fabric solution across the Philippine broadband operator’s new facilities. The move aims to enhance network performance, scalability, and automation using artificial intelligence and event-driven orchestration to prepare for increasing high-performance computing (HPC) and sovereign cloud demands.

The deployment includes Nokia’s 7220 Interconnect Router (IXR), its SR-Linux network operating system, and Event-Driven Automation (EDA) platform—enabling Converge to deliver faster, more reliable digital services while improving energy efficiency and regulatory compliance. Financial terms of the agreement were not disclosed.

This development comes amid Nokia’s intensified push into data center and AI infrastructure, a pivot accelerated under CEO Justin Hotard and further reinforced by its 2024 acquisition of Infinera Corporation for USD 2.3 billion.

How does the Nokia–Converge partnership align with Southeast Asia’s sovereign cloud and AI infrastructure goals?

As digital adoption surges across the Philippines, demand for compliant, scalable, and low-latency infrastructure is intensifying. The partnership positions Converge to meet these expectations while simultaneously building readiness for AI application hosting. With over 15 million subscribers as of 2024, the Philippine broadband provider is now expanding its network capacity through next-generation automation and switching technologies designed for AI-integrated workloads.

Nokia’s solution supports sovereign cloud alignment, a crucial requirement as regional governments increase scrutiny on data governance. By integrating programmable NOS and automation, Converge is enabling dynamic workload optimization and regulatory-compliant cloud-native deployments.

CEO Dennis Anthony Uy emphasized the importance of future-proofing data centers for hybrid workloads. He indicated that AI integration is no longer optional, and that network infrastructure must be re-architected for extreme scalability and reliability.

What are the key technical components and capabilities of Nokia’s Data Center Fabric solution?

At the core of the deployment is Nokia’s Data Center Fabric—an open, modular switching architecture comprising high-capacity 7220 IXR platforms and software intelligence. The SR-Linux network OS provides disaggregated control, while the EDA stack enables intent-based automation and real-time telemetry.

These tools allow for predictive scaling, operational resilience, and reduced resource consumption. According to Nokia, the EDA platform improves response times while consuming fewer compute resources, enhancing sustainability without compromising performance.

Nokia Vice President and Head of IP Networks for Asia Pacific, Kent Wong, said the deployment will give Converge the scalability and automation needed to meet the next wave of digital transformation. He noted that Nokia’s solutions are purpose-built to support sovereign data infrastructure while enabling new services and improved reliability.

How does this deployment fit into Nokia’s broader enterprise and data center strategy in 2025?

Nokia has been actively shifting its portfolio mix in response to slowing revenue in its legacy mobile networks business. The $2.3 billion acquisition of Infinera in 2024 expanded its high-speed optical networking and data center reach across North America and Asia.

The appointment of Justin Hotard as CEO, formerly of Intel’s Data Center & AI group, marked a deeper strategic focus on cloud infrastructure. Nokia is now increasingly positioning itself as a full-stack AI networking player—not just a telecom OEM.

Analysts believe Nokia’s AI and data center strategy is a long-term hedge against margin pressures in mobile infrastructure. The Converge agreement supports this pivot, giving the Finnish vendor a foothold in Southeast Asia’s fast-growing hyperscale and enterprise data center segments.

What are the implications for Converge’s service offerings and competitive position in the Philippine broadband market?

Converge ICT Solutions Inc. is among the Philippines’ most aggressive network builders, with nationwide fiber rollouts, enterprise partnerships, and ambitious data center expansion plans. The company has been actively investing in next-generation infrastructure to stay ahead of user expectations and enterprise demands.

Chief Network Transformation Officer Paulo Martin Santos noted that automation and AI are now essential to delivering consistently high-quality service while ensuring regulatory compliance. He added that the Nokia collaboration will improve operational efficiency and allow Converge to respond faster to future digital service needs.

The deployment supports Converge’s longer-term strategy of growing its presence in enterprise and cloud hosting verticals. As demand for sovereign cloud, AI-enabled services, and low-latency edge computing increases, operators like Converge are expected to play a larger role beyond consumer broadband.

How have investors and analysts responded to Nokia’s pivot toward AI and data center infrastructure?

Institutional investors are cautiously optimistic about Nokia’s transition. Recent analyst forecasts suggest 12–13% annual earnings growth over the next three years, anchored by diversification into automation, optical networks, and enterprise solutions. Still, some note that mobile infrastructure revenues remain under pressure, particularly in Europe.

As of June 2025, Nokia Corporation’s trailing twelve-month revenue stood at approximately EUR 22.6 billion with earnings of EUR 1.4 billion. Its P/E ratio remains modest at ~19.6x, reflecting stable but unspectacular profitability. U.S.-listed Nokia ADRs (NYSE: NOK) trade at around USD 5.15–5.16, with institutional interest from investors like GAMMA Investing and Canton Hathaway steadily increasing.

Market observers are watching whether Nokia’s AI-infrastructure strategy can materially lift revenue growth and gross margins in 2025–2026, particularly as hyperscalers and telcos increase automation budgets. The Converge deployment adds visibility to Nokia’s Southeast Asia momentum.

What is the future outlook for both Nokia and Converge in AI-integrated infrastructure?

For Nokia, the deployment reinforces its narrative as a future-focused network partner for AI, automation, and sovereign cloud demands. If successful, the Converge deal could lead to more wins across APAC’s emerging data center ecosystems, particularly in countries like Vietnam, Thailand, and Malaysia.

Future deployments are likely to integrate Nokia’s optical transport and energy-efficient networking hardware with edge compute orchestration. Analysts expect the company to pursue additional Fabric-as-a-Service (FaaS) agreements and bundled managed automation solutions by 2026.

For Converge, the data center fabric sets the stage for higher-tier enterprise offerings, including AI hosting, sovereign cloud, and regional B2B data services. The company has already been linked to plans for carving out its infrastructure assets, including a possible sale of up to 40% of its fiber network arm—an event that could be bolstered by the successful execution of this Nokia-backed modernization.