Nokia and Furukawa Electric target Brazil data center market

SAO PAULO - Nokia (HE:NOKIA) and Furukawa Electric LatAm have expanded their partnership to deliver data center automation and security solutions in Brazil, a move that capitalizes on the growing demand for advanced network technologies in Latin America. This collaboration, which began in 2022, will now include Nokia's Data Center Fabric solution in the Brazilian market.

The Data Center Fabric solution incorporates high-performance data center switching platforms, Nokia SR Linux, and is managed by Nokia's Event-Driven Automation (EDA) platform. EDA is designed to simplify data center management and potentially reduce operational efforts by up to 40%. This platform, which was globally launched just two weeks ago, is now available in Brazil, emphasizing the rapid deployment of cutting-edge technology in the region.

Roberto Kihara, General Sales Manager for Furukawa Electric LatAm, expressed enthusiasm about extending the partnership with Nokia, citing the "hot" market for passive optical network (POL) technology in Latin America. The companies are poised to achieve significant advancements in the region's data center market, leveraging Brazil's substantial investment volume and demand for automation solutions.

Juan Pablo Anadon, Head of Enterprise, Webscale and Partners Sales for Latin America, Network Infrastructure at Nokia, highlighted the commitment to bringing state-of-the-art data center technology to the Latin American business market. He emphasized the role of EDA in meeting the demands of AI workloads and the importance of reliable, secure, and easy-to-operate data center networks.

The ongoing partnership will also continue to promote advanced POL technologies throughout Latin America, building on the companies' established relationship.

The announcement is based on a press release statement and reflects Nokia and Furukawa Electric LatAm's efforts to support and advance data center networks in Latin America. The partnership aims to provide high-performance networks that can integrate into any ecosystem, creating new opportunities for monetization and scale for service providers, enterprises, and partners.

InvestingPro Insights

Nokia's expanded partnership with Furukawa Electric LatAm aligns well with the company's strategic positioning in the communications equipment industry. According to InvestingPro data, Nokia has demonstrated financial stability with a revenue of $21.59 billion over the last twelve months as of Q2 2024. This robust revenue base provides a solid foundation for the company's expansion efforts in Latin America.

InvestingPro Tips highlight that Nokia holds more cash than debt on its balance sheet, which could be advantageous as it invests in new markets and technologies like the Data Center Fabric solution. This financial flexibility may allow Nokia to pursue growth opportunities in emerging markets without compromising its fiscal health.

Another relevant InvestingPro Tip indicates that Nokia's net income is expected to grow this year. This projected growth could be partly attributed to strategic moves like the expanded partnership in Brazil, which taps into the increasing demand for data center automation and security solutions.

It's worth noting that Nokia offers a dividend yield of 2.28% and has raised its dividend for three consecutive years, as per InvestingPro Tips. This consistent dividend growth may appeal to investors looking for stable returns while the company pursues expansion in high-potential markets like Latin America.

For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for Nokia, providing a deeper understanding of the company's financial health and market position.

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