Nokia bets on improved chip designs to handle AI's energy appetite

Finnish telecom giant works to make data center hardware more efficient

Nokia has identified three major future growth drivers in enterprise solutions: 5G private networks, data centers and defense communication networks. (Photo by Lauly Li)

LAULY LI and CHENG TING-FANG

March 25, 2025 11:19 JST

BARCELONA, Spain -- Nokia is betting that advances in chip development will help slash power consumption by data centers and networks as the demands of AI computing increase the risk of an energy crunch.

Nokia's vice president and global head of sustainability Subho Mukherjee told Nikkei Asia that the Finnish telecom equipment maker has invested heavily to develop a variety of new chipsets to reduce the power consumption of its products by 50% or more.