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Nokia, EBB Team Up to Upgrade AI Data Centers Across Malaysia

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Key Takeaways

  • Nokia will connect six Open DC facilities in Malaysia with advanced IP network solutions.
  • The firms signed an MoU to develop joint AI and data center connectivity strategies.
  • Deployment uses Nokia's quantum-safe networking and energy-efficient routers.

Nokia (NOK - Free Report) has announced a contract with Extreme Broadband ("EBB") and its subsidiary, Open DC, to enhance the performance and security of Open DC’s Artificial Intelligence (AI) data centers across Malaysia. This initiative aligns with the country’s National Cloud Computing Policy and caters to the high standards of the banking and financial services sector, strengthening EBB and Open DC’s position as leading players in Malaysia’s digital infrastructure space.

The company’s advanced IP network solutions will interconnect six Open DC facilities, including CJ1 Cyberjaya, JB1 Menara MSC Cyberport and JB2 Menara Ansar in Johor Bahru, PE1 Menara Suntech and PE2 Bayan Lepas Industrial Park in Penang, and the upcoming D8-1 site in Kedah. The deployment will deliver a highly reliable and secure network, supporting EBB’s vision of “Innovating Connectivity” and Open DC’s mission to establish strategic connectivity hubs nationwide.

Nokia and EBB have also signed a Memorandum of Understanding (MoU) to collaborate on data center solutions and quantum-safe networks (QSN). Together, the companies will develop joint go-to-market strategies for AI and data center connectivity, offering services such as enterprise connectivity, multi-cloud integration and Distributed Denial of Service (DDoS) protection. They will also conduct joint testing and validation of Nokia’s Data Center Gateway, Data Center Fabric with Event-Driven Automation (EDA) tools and DDoS security solutions.

The modernization will leverage Nokia’s Data Center Fabric, Data Center Gateway and quantum-safe networking technologies, alongside its energy-efficient 7250 and 7220 Interconnect Routers. These solutions will ensure long-term scalability, sustainability and protection for Open DC’s data centers.

Management highlighted that Nokia has built trust with data center operators worldwide, and this collaboration with Extreme Broadband will help them play a bigger role in Malaysia’s fast-growing data center industry. The company’s IP solutions deliver unmatched reliability, scalability and efficiency, empowering Open DC to serve customers with next-generation security and performance.

Recently, Nokia was chosen by Vortex Group to upgrade its IP edge and transport network across Maharashtra, Goa and Gujarat in India. The initiative aims to boost broadband speeds, extend connectivity to underserved areas and transform Vortex’s infrastructure into a more scalable and efficient system.

Nokia is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. Leveraging state-of-the-art technology, Nokia is transforming the way people and things communicate and connect. These include seamless transition to 5G technology, ultra broadband access, IP and Software Defined Networking, cloud applications and Internet of Things.

In 2025, the company expects strong sales growth in the Network Infrastructure, Cloud and Network Services segment. Nokia expects stable net sales from the Mobile Networks segment.

However, Nokia is exposed to the highly cyclical nature of the telecommunications industry. Certain periods of high investments followed by a slowdown create uncertainty regarding the company’s top-line growth. Moreover, stiff competition in the wireless equipment market and macroeconomic headwinds remain major concerns.

NOK’s Zacks Rank & Stock Price Performance

Nokia currently carries a Zacks Rank #4 (Sell). The stock has lost 1.8% over the past year against the Wireless Equipment industry’s growth of 27.9%.

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Stocks to Consider From the Computer and Technology Space

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InterDigital’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with the average surprise being 54.27%. In the last reported quarter, IDCC delivered an earnings surprise of 94.05%. Its shares have surged 100.8% in the past year.

Ubiquiti earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 49.5%. In the last reported quarter, UI delivered an earnings surprise of 82.47%. UI shares have skyrocketed 170.3% over the past year.

MSI’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6.8%. In the last reported quarter, MSI delivered an earnings surprise of 6.25%. Its shares have increased 7.3% in the past year.

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