Data centers and the AI era

As artificial intelligence accelerates, data centers are reclaiming the spotlight. In the latest episode of the Network Effect, Paul Alexander, VP of Network Infrastructure in the UK and Ireland for Nokia, discusses how data centers are evolving to meet the modern world.  

“AI is a game-changer and it’s a race,” says Paul Alexander of Nokia, who’s spent his career developing telecom infrastructure.

He tells The Network Effect’s Michael Hainsworth that AI’s insatiable hunger for data is expected to drive a 50% spike in data center construction over the next five years. But it’s not all about flipping the switch and plugging in a new server.

“We’re talking about an investment in infrastructure – billions of dollars, actually – and the long-term prosperity of companies and entire countries hinges on getting this right,” he adds.

Beyond finding the right location and lining up enough power, data center operators must tackle mounting security challenges. With the looming threat of “Q-Day,” when quantum computers might crack today’s encryption, Alexander emphasizes the importance of being future-proof. “We’re absolutely encouraging our customers to deploy quantum-safe networks now,” he notes. “It’s a defense-in-depth strategy.”

And then there’s the environment. AI demands serious energy, prompting firms to employ new cooling methods, locate facilities in cooler climates, and invest heavily in renewable energy. But Alexander believes success will come down to forging the right alliances: “When you come together with a partner that can really help you go to market, help you scale, help your strategy, help your objectives, then you get a network effect: where one plus one really does equal three.”

In the age of AI, data centers aren’t just back in vogue; they’re vital to a world that demands faster, smarter, and greener technology.