Telia, KTH Royal Institute of Technology and Brookfield signed a memorandum of understanding on June 15, 2026, to jointly develop sovereign AI services and applications in Sweden. The partnership builds on a previously announced SEK 95 billion ($10 billion) AI infrastructure investment by Brookfield, aiming to establish long-term technology leadership and provide Swedish industries with secure, locally controlled artificial intelligence capabilities.
Building sovereign AI capabilities
The collaboration will focus on creating scalable sovereign AI services, including those based on Generative AI and LLM architectures and proprietary KTH software. These tools are designed to meet the technology requirements of Swedish organizations in healthcare, education, manufacturing and critical infrastructure. Telia's system integrator, Telia Cygate, will operate and deliver these services on top of the new infrastructure.
Research and venture development
The partners also plan to develop an AI test bed and launch AI ventures hosted by KTH. These initiatives will give researchers greater access to the latest AI for Science & Research tools and help entrepreneurs bring new products to market. By centralizing these resources, the project aims to attract further talent, investment and academic research to Sweden.
Executive perspectives
Patrik Hofbauer, president and CEO of Telia Company, emphasized the regional necessity of the project. "Building sovereign tech capabilities is a matter of urgency for Sweden and Europe, and smart partnerships are how we make it happen," Hofbauer said.
Sikander Rashid, head of AI infrastructure for Brookfield, said the collaboration addresses a clear market need. "As demand for AI services continues to grow across Europe, success will depend on a strong ecosystem that brings together infrastructure, connectivity and innovation," Rashid said.
Why this matters for science and research professionals
The proposed KTH-hosted AI test bed represents a tangible shift in how academic and industrial research will access computational resources in Sweden. For researchers, this partnership means earlier and more direct exposure to enterprise-grade large language models and sovereign AI infrastructure, reducing the friction typically involved in securing compute for experimental or applied science projects.
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