Azerbaijan may establish a local artificial intelligence (AI) data centre as part of its digital infrastructure development, Azertag cited Alexander Shunin, the head of Nokia’s Azerbaijan representative office and sales director for Eurasia, as saying.

Speaking at the Online Azerbaijan project’s reporting event on March 10, he noted that as traffic volumes grow, networks will require optimisation and further expansion, aligning with global trends that are also impacting Azerbaijan.

"AI is already making a significant impact on the industry, and operators worldwide are building local data centers at the edge computing level. This process is inevitable in Azerbaijan," Shunin said.

He said that the establishment of an AI-powered data centre would also necessitate the adaptation of technologies for the Azerbaijani language. Shunin pointed to Kazakhstan as an example, where AI is being adapted for the Kazakh language. "I am confident that similar steps will be taken in Azerbaijan shortly," he added, highlighting that the process should begin within the next couple of years due to AI’s rapid development.

"The world’s major languages are already integrated into AI systems, and we see this trend advancing in neighbouring countries. Azerbaijan will need to address this as well. Telecom operators should play a key role in this, and as Nokia, we are providing the necessary infrastructure. While we do not develop AI training models, our role as an infrastructure vendor is to support the country’s data centers," Shunin said.

Alongside its AI-related initiatives, Nokia is preparing to deploy a 5G network in Azerbaijan, having received permission to utilise the necessary frequencies, Shunin told journalists, according to Azertag. Speaking on the sidelines of the Online Azerbaijan event, Shunin said that Nokia had launched a 5G pilot project in Baku last year, which is now in its final stages. "The pilot phase is nearly complete. We are currently awaiting regulatory approval for frequency allocation. Once the license is granted, we will be ready to commence full-scale implementation," he said.

However, Shunin noted that many operators are facing slow monetisation of 5G networks. "The investment required for 5G is substantial, but returns on investment are not as quick as expected. As a result, many operators are prioritising the development of 4G and 4G+ networks to maximise returns before fully transitioning to 5G," he said.