Arelion Expands Scandinavian Fiber to Meet AI Demand

Arelion is investing heavily in its Scandinavian fiber backbone as the region emerges as one of Europe’s most competitive hubs for artificial intelligence and data center infrastructure. The company, which operates one of the largest global Internet backbones, confirmed plans to deploy new high-fiber count cables in its existing ducts between Stockholm, Oslo and Copenhagen.

The  move intended to address the sharp rise in demand from hyperscalers and enterprises building AI-driven workloads.

The project, scheduled for completion in 2026, aims to secure long-term fiber availability, enhance network resilience, and provide direct connectivity between Scandinavia and key global markets across Europe and North America. According to Arelion, the strategy reflects not only immediate AI-related demand but also long-term growth projections for digital infrastructure in the Nordic countries.

Scandinavia has increasingly attracted hyperscale data center investment due to its availability of land, reliable and sustainable power sources, and comparatively stable energy pricing. Oslo’s data center sector alone already provides 423 megawatts of capacity, and analysts forecast Nordic capacity will increase by 280 to 580 megawatts annually. Projections suggest that the region’s data center construction market could reach $7.38 billion by 2030, growing at a compound annual rate of 23.47 percent. At the same time, the regional AI market is expanding even faster, with a projected CAGR of 26.24 percent to nearly $20 billion by 2031.

Balancing Performance with Sustainability

For Arelion, the fiber upgrade strengthens its mesh of terrestrial routes across Scandinavia, which currently connects to 13 subsea cables serving the Nordics and Baltics. The new installation will not only interconnect hyperscale data centers with newly built last-mile infrastructure but also leverage existing duct capacity laid decades earlier. Arelion, then operating as Telia International Carrier, originally constructed its Scandinavian network 25 years ago with multiple ducts along major Nordic routes, anticipating the sort of future demand now materializing.

Chief executive Daniel Kurgan described the investment as part of a long-term approach that balances performance with sustainability. Installing new cables within existing ducts, he said, significantly reduces environmental impact compared to building an entirely new duct system. He emphasized that this expansion represents the first stage of a broader multi-year program designed to maximize existing assets, scale capacity, and increase diversity across the network.

By upgrading its infrastructure, Arelion is reinforcing its ability to provide customers with access to what independent rankings list as the number one global Internet backbone. Its service portfolio includes IP Transit, Wavelengths, Dedicated Internet Access, Cloud Connect, Global Ethernet Virtual Circuit, and DDoS Mitigation. These offerings are expected to benefit from enhanced scalability and resilience as Scandinavian enterprises, content providers, and service providers accelerate adoption of AI and other emerging digital applications.