Telecom firms are increasingly making significant investments in AI infrastructure to meet the surging demand for AI compute capacity and adhere to sovereignty requirements favouring local providers. This trend is highlighted in a recent report by Omdia, which suggests that telecom operators are not just adapting but are actively seeking new growth avenues as a result.
Creating New Opportunities for Telcos
With national and regional initiatives like the EU’s Gigafactories, telecom companies are now in a position to lead large-scale projects rather than allow hyperscalers to dominate. Omdia’s report indicates that this pivot towards AI infrastructure is beginning to show promising signs of monetisation for telecom operators.
Revenue Projections Illustrate Growth
For instance, data centre revenue accounted for 4 per cent of SK Telecom’s revenue in the third quarter of 2025, with plans to reach KRW1 trillion by 2030. Similarly, Ooredoo anticipates that its digital infrastructure will contribute 12 per cent to the group’s revenue by 2030, significantly up from just 3 per cent in 2025.
Investment Strategies Vary Across Regions
Omdia’s analysis reveals that telecom operators across Asia, Europe, Canada, and the Middle East are committing substantial capital to cloud services, data centres, GPU as a Service, and AI RAN. However, there is no one-size-fits-all approach; strategies vary widely in structure, commitment level, and risk tolerance.
Diverse Models of AI Infrastructure Investment
Some telecom companies have opted to create dedicated subsidiaries, such as STC’s Center3 and Iliad’s Scaleway. Others are pursuing joint ventures, as seen with SingTel. For firms like SK Telecom, SoftBank, and Ooredoo, these investments are part of a broader strategic realignment, reflecting a shift in capital allocation away from traditional connectivity services.
A Strategic Shift in Focus
As Julia Schindler, Principal Analyst at Omdia, states, “AI infrastructure has become a strategic bet for telcos.” The rapid rise of AI traffic, coupled with national sovereignty initiatives, presents a unique opportunity that many telecom operators are eager to exploit. This trend suggests that the landscape of telecommunications is undergoing a fundamental transformation as companies position themselves to leverage AI technologies.
As this investment wave continues, it is likely that the telecom sector will see a significant evolution in how infrastructure is developed and utilised, ultimately reshaping the relationship between traditional telecom services and emerging AI capabilities.
