Fiber firm Arelion has announced upgrades to its Scandinavian network to meet AI demand in the region.

The company has connected hyperscale data centers via newly built last‑mile infrastructure. High-fiber count cables were also deployed in existing ducts between the major Nordic capitals of Stockholm, Oslo, and Copenhagen.

Arelion aims to accelerate market growth by enhancing backbone capacity and enabling broader access to solutions like scalable IP transit, global 40G Ethernet virtual circuit (VC), and distributed denial of service (DDoS) mitigation, connecting carriers, content providers, and enterprise customers to what CEO Daniel Kurgan dubbed “Scandinavia’s AI superhighway.”

Arelion in June overhauled its Scandinavian infrastructure to build the AI-optimized network, aiming to connect hyperscale data centers across the region.

The overhaul saw Arelion bring in scalable 400 Gbps (400G) coherent pluggable optics from Ciena, including its open 6500 Reconfigurable Line System, leveraging 1.6 Tbps waves in a move the operator said would boost bandwidth for both new and existing customers.

Prior to the revamp, the operator carried out live field trials in the region, including a 1,069-kilometer transmission along its long-haul IP route from Stockholm to Hamburg, Germany, enhanced by Cisco’s 800G ZR+ coherent optics.

“By anticipating future demand rather than reacting to it, we built the infrastructure foundation that’s now critical for supporting the AI growth in the Scandinavian region. Installing new cables in our existing ducts will also minimize the impact on the environment compared to constructing a brand-new duct and cable system,” Kurgan noted in a statement. “This strategic upgrade is the first step in a series of ongoing investments, reflecting our long-held ambition to maximize our network assets by enhancing capacity, scalability, and diversity.”

The operator expects to complete the network upgrade by 2026, with further Scandinavian network investments planned throughout the remainder of next year and into 2027.

Arelion at large

Arelion originally built its Scandinavian network in 2000, under its original name of Telia International Carrier.

It boasts significant duct capacity across Scandinavia, while operating a mesh of terrestrial routes in the region, providing access to 13 subsea cables connecting the Nordics and Baltics.

Arelion’s strategy reflects Scandinavia’s status as a prime hub for data centers, with Oslo alone hosting 423 megawatts (MW) of total data center capacity.

The region allows operators to capitalize on free cooling from naturally cold air and abundant hydroelectric resources, advantages not typically available in highly saturated markets such as Frankfurt, London, Amsterdam, Paris, and Dublin (FLAP-D).

The Norwegian Data Center Industry (NDI) estimates installed capacity across the Nordics is projected to grow by up to 580MW annually. Data platform provider Ember forecasts data center demand in the region could surge by up to 110 percent.

Scandinavia’s AI sector is also experiencing rapid expansion, with projections from Statista indicating a 26.24 percent compound annual growth rate (CAGR) and a market value expected to reach $19.9 billion by 2031.