Ericsson is making a big move. After more than 20 years in Kista, the company is relocating its global headquarters and key operations to central Stockholm. This is not just a change of address. It’s the largest office lease ever signed in Swedish history.

The new campus will cover about 71,000 square meters in Hagastaden, a district just north of downtown Stockholm. Ericsson will spread across six buildings, with contracts spanning 15 years. One landlord called it the biggest office deal in Europe this year.

The move starts in early 2028 and will happen in phases. The Infinity building, part of the new setup, will be ready by late 2027. The rest is still under construction on a platform above a major city highway.

This is more than real estate. Ericsson’s CEO said the shift is about talent and innovation. Being in the city’s tech heart puts the company closer to partners, decision-makers, and a vibrant ecosystem. The new location aims to attract top talent and foster collaboration.

Kista was once Sweden’s Silicon Valley, with Ericsson as its anchor. But the suburb’s appeal has faded. Vacancy rates in Kista offices are over 26%, double the rate in central Stockholm. Security concerns and organized crime reports have also driven some businesses away. Ericsson’s move reflects these challenges.

Tech Giants Racing Toward 6G and AI Networks

Ericsson isn’t just moving offices. It’s also teaming up with Telstra, Australia’s leading telecom, to develop 6G technology. This partnership focuses on research, setting standards, and real-world testing of the next-generation network.

Both companies see AI as central to 6G. The goal is to create networks that are smart, adaptable, and customizable. Telstra’s vision includes networks that sense their environment and offer new services in public safety, agriculture, and weather detection.

Ericsson’s CTO described 6G as a platform that doesn’t just connect but senses and orchestrates resources. The partnership involves engineers visiting each other’s innovation centers, sharing knowledge and testing new ideas.

Innovation Labs and the Future of AI Networking

Meanwhile, Nokia, another telecom giant, is investing in AI-driven networking. They recently opened an AI Networking Innovation Lab in Sunnyvale, California. This lab focuses on developing and testing advanced networking technologies designed for the AI era.

AI workloads demand networks that can handle massive data flows with precision and scale. Nokia’s lab brings together hardware, software, and ecosystem partners to co-create solutions. This includes new protocols, switching technology, and automation geared for data centers hosting AI applications.

The lab also helps validate designs by testing real-world AI training and inference workloads. This reduces deployment risks for customers and speeds up adoption of AI-native networks.

Companies like AMD and Keysight collaborate in this lab to benchmark and optimize AI networks. The goal is to build networks that support the massive demands of modern AI, with better reliability and performance.

All these moves highlight a clear trend: telecom and tech companies are shifting focus from just speed to intelligence and flexibility. AI and 6G are seen as drivers for the next wave of innovation in connectivity.

Back in Stockholm, Ericsson’s new campus will be smaller but denser than its sprawling Kista site. This reflects a strategic shift. The company is streamlining operations while embedding itself deeper into the city’s tech scene.

This transition is happening as Ericsson faces some financial headwinds. The North American 5G upgrade cycle is slowing, and the company cut about 1,200 jobs in Sweden last year. Still, investing in a central, vibrant location and next-gen technology partnerships signals confidence in a long-term future.

For Stockholm, the arrival of Ericsson’s new campus will boost Hagastaden as a tech hub. It will bring thousands of jobs and attract other companies and startups. The district’s mix of offices, homes, and green spaces makes it a lively place to work and innovate.

In a world racing toward AI and smarter networks, Ericsson’s move is both practical and symbolic. It’s about being at the center of change, close to the action, and ready for the future of connectivity.