Telefónica has launched a network of mini data centers in Spain based on repurposing old telephone exchanges. The idea is simple yet ambitious: reuse locations already connected to the network, with electrical connections and fiber optics, to deploy computing and storage capacity close to the customer, offering “premium” cloud services with low latency while strengthening data sovereignty.
According to shared details, the network already has about a dozen active nodes spread across nine Spanish cities, with an immediate plan to add seven more sites by June. Overall, the infrastructure has been initially sized with approximately 3 MW of added power, with room to expand each node’s capacity based on demand.
However, the roadmap points much further ahead. In the medium term—within five to seven years—Telefónica estimates it could convert over one hundred exchanges into computing nodes with capacities between 1 and 2 MW per mini data center. In other words, a “distributed” layer of digital infrastructure situated between the client and large data centers, aiming to bring processing closer to where data is actually generated.
Why edge is different from traditional cloud
Edge computing is not intended to replace large data centers or public cloud but to solve a common problem with the centralized model: latency and dependence on long routes to remote regions. Telefónica presents its network as a complement to hyperscalers, designed for scenarios where immediate response isn’t a luxury but an operational requirement.
In practical terms, this translates to use cases such as real-time video analysis, drone management, or industrial applications in logistics, ports, distribution, assisted driving, or digital twins. In these scenarios, just a few milliseconds can determine whether a system is “functioning” or unviable in production.
AI at the edge: inference near the data
The operator also aims to position these nodes as a suitable platform for running artificial intelligence applications, particularly during inference (when a trained model is used to make decisions, classify, detect, or generate responses). The infrastructure will feature Nvidia acceleration chips, a key element to ensure edge isn’t just “servers nearby” but provides real capacity for modern workloads.
This approach aligns with a clear trend: many organizations don’t need to train models from scratch for each project but do require secure inference—performance, controlled cost, and proximity—to automate processes and extract real-time value from data.
Data sovereignty as a business argument
Beyond performance, Telefónica emphasizes a factor increasingly present in procurement and corporate decisions: data sovereignty. Having a distributed network within national territory allows for more direct assurance that sensitive information is stored and processed locally. This is especially relevant for sectors like Public Administration, banking, or healthcare, where data location, applicable jurisdiction, and operational control are just as important as cost.
This point is not minor: telco edge can support hybrid models where part of the workload remains close to the client due to regulatory or latency requirements, while the rest relies on larger infrastructures for scaling and general services.
A second life for exchanges after copper network shutdown
The strategy also responds to an industrial reality: the progressive closure of copper networks leaves many exchanges partially or fully unused. Telefónica expects many will be sold as real estate assets, but others will be transformed into mini data centers with a “second life” from a technological perspective.
One of the plan’s strengths is that these sites already have fiber connectivity, integration with fixed and mobile networks, and direct access to 5G core. This baseline reduces deployment times and complexity compared to projects starting from scratch, where securing land, power, permissions, and connectivity often become bottlenecks.
A European-scale project with public funding
The initiative is part of a European project aimed at creating an edge computing network to reinforce the EU’s technological autonomy. In Spain, Telefónica has received a €93 million grant plus additional un disclosed investments. Other operators participating in the European deployment include Orange, Deutsche Telekom, Telecom Italia, and 4iG, each with plans for edge nodes in their respective countries.
The approach suggests a commitment to distributed infrastructure as a “strategic layer” for Europe—not only for technical efficiency but also as a pillar of digital resilience and operational capacity in regulated environments.
“Premium boutique,” not a frontal war with public cloud
Telefónica emphasizes that it does not aim to compete directly with Amazon, Microsoft, or Google in mass public cloud, where economies of scale and vast catalogs make price matching difficult. Instead, their approach resembles more of a “premium boutique”: integrated connectivity (5G and fiber), security, computing, and storage solutions designed for needs where proximity is crucial.
At the same time, the company is exploring partnerships with major cloud providers to deploy vertical solutions over Telefónica’s infrastructure. In other words, rather than forcing a choice between “telco edge” or “hyperscaler,” the goal is to allow both worlds to coexist when a use case justifies it.
Frequently Asked Questions
What is an “edge” mini data center and how does it differ from a large data center?
An edge mini data center is a distributed computing node, smaller and closer to the customer, designed to reduce latency and process data nearby. A large data center is more centralized and optimized for scale and cost efficiency.
What types of projects are best suited for edge computing in Spain?
It’s ideal for real-time video analytics, industrial automation, logistics, ports, drones, assisted driving, and digital twins—scenarios where latency and nearby processing are critical.
What does “data sovereignty” mean in cloud and AI deployments?
It involves ensuring sensitive data is stored and processed under specific location and operational control conditions, especially relevant for public administration, banking, and healthcare sectors.
Why can repurposing telephone exchanges speed up infrastructure deployment?
Because these locations already have electrical power, fiber connectivity, integration with fixed/mobile networks, and direct access to 5G core, reducing time and dependencies compared to starting from scratch.
via: Expansion and Telefónica