Telecom Operators Increase AI Infrastructure Investment Amid Sovereignty Demand
Telecom operators are significantly increasing investments in AI infrastructure to address growing demand for AI compute capacity and adhere to national data sovereignty regulations. Reports indicate that initiatives like the EU's AI Gigafactories are creating opportunities for telcos, with major players such as SK Telecom and Iliad committing substantial funds to enhance their AI capabilities. Overall, telecom companies are shifting capital expenditures from traditional networks to AI and cloud services across various regions, including Asia, Europe, Canada, and the Middle East.
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Telecom operators are accelerating capital investments in AI infrastructure to meet rising demand for AI compute capacity and comply with national data sovereignty requirements. Omdia reports that initiatives like the EU's AI Gigafactories offer telcos opportunities to lead infrastructure projects.
In South Korea, SK Telecom's data center revenue was 4% of total revenue in Q3 2025, with a target of KRW 1 trillion by 2030. Ooredoo anticipates digital infrastructure will contribute 12% of revenue by 2030.
Iliad plans to invest €3 billion for AI infrastructure in Europe. Indian telecom firms aim to invest over ₹1 lakh crore (~US$12 billion) in AI-ready data centers in the next 2-3 years. Overall, telcos are reallocating capex from legacy networks to AI and cloud services across Asia, Europe, Canada, and the Middle East.
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