Nokia Expands 5-Year Deal with Microsoft Azure to Power Data Centre Networks

Nokia has announced a five-year expansion of its ongoing agreement with Microsoft to supply routers and switches for Azure’s data centre networks. This collaboration will bolster Nokia's global presence in over 30 countries and solidify its position as a key strategic supplier for Microsoft’s worldwide cloud infrastructure.

Under the expanded deal, Nokia will provide its 7250 IXR-10e platform to deliver multi-terabit-scale interconnectivity across Microsoft’s data centres. The Nokia SONiC-based data centre routers and switches will be deployed in new facilities and play a pivotal role in Microsoft’s migration from 100GE to 400GE connectivity in existing locations. 

These upgrades will enhance Azure’s scalability, ensuring its capacity to manage surging traffic demands driven by growing compute workloads.

Vach Kompella, vice president and general manager of Nokia’s IP Networks Division, said, “We are pleased to move to the next phase of our relationship with Microsoft by expanding the agreement’s product scope, geographical reach and time commitment to five years. As a result of this new deal, Nokia will further increase the scalability and reliability of Microsoft Azure data centers around the world.”

The agreement builds on the companies’ shared commitment to accelerate open source SONiC development. Nokia’s continued innovation in SONiC, particularly in chassis-based support for high-capacity networks, underscores its strategic investments in data centre infrastructure. Deployment of the new 7250 IXR-10e platform is set to begin in February 2025.

David Maltz, technical fellow and corporate vice president for Microsoft Azure Networking, explained, “As leaders in the advancement of cloud computing, we are continuously expanding our global footprint to support the massive growth in compute workloads. Over the past six years we have worked with Nokia’s engineers to develop their routers running SONiC to rapidly advance our expansion at the quality our customers demand.”

This strengthened partnership underscores Nokia’s role in advancing Microsoft Azure’s infrastructure to meet the demands of an ever-growing cloud computing landscape.

Other Network Infra Providers

Earlier this year, Microsoft collaborated with Lumen Technologies to enhance its network capacity and capabilities to address the increasing demand for its data centres driven by AI. Lumen’s Private Connectivity Fabric, an AI-ready custom network, is said to enhance connectivity between Microsoft data centres, offering greater capacity and speed to meet rising data demands.