TDC NET: The digital infrastructure of the future requires greater investment

A new report from Deloitte, Investment Perspectives in the Danish Telecommunications Industry, concludes that investments in the Danish telecom sector in the coming years will primarily focus on modernisation and maintenance of existing infrastructure.

However, in TDC NET’s assessment, the report underestimates the level of investment required to secure Denmark’s digital infrastructure at a time of rising data traffic, new technologies, and an increasingly complex security landscape.

Today, digital infrastructure is one of society’s most critical infrastructures. At the same time, developments in artificial intelligence, cloud services, data centres and digital platforms are accelerating. This is increasing both data traffic and the demands on network security, resilience and capacity.

“Denmark’s digital infrastructure is one of the cornerstones of our society and economy. It is therefore crucial that we have a realistic understanding of the investments that will be required in the coming years. Developments in AI, cloud and cybersecurity are increasing the demands on both capacity and resilience in networks – and this requires continued and significant investment,” says Michel Jumeau, CEO of TDC NET.

TDC NET has outlined the five most important points of criticism of the report below.

1. A new investment phase for digital infrastructure

The report largely describes the telecom sector as a mature industry where investments follow relatively stable cycles.

However, developments in the digital economy point towards a new investment phase. AI, cloud, growing data volumes, geopolitical uncertainty and increased cybersecurity requirements will, in the coming years, drive a greater need for investment in both capacity and resilience in digital networks.

This means that investments in digital infrastructure will go far beyond maintaining existing networks.

2. The digital value chain drives demand

The analysis primarily considers telecom infrastructure in isolation. At the same time, key parts of the digital value chain – including hyperscalers, cloud providers, data centres and digital platforms – are not included in the assessment.

These players are increasingly driving the demand for capacity and performance in networks. Excluding them from the analysis may therefore lead to an underestimation of the investments required in infrastructure.

3. Security and resilience as key investment drivers

The report itself highlights security, robustness and network upgrades as some of the most persistent investment drivers towards 2040.

This is a development already evident in the industry. Requirements for cybersecurity, resilience and protection of critical infrastructure are becoming increasingly important as the threat landscape grows more complex and society becomes more digitally dependent.

As a result, investments in network security and resilience are expected to play an increasingly significant role in the years ahead.

4. The impact of regulation on investment

The report also points out that regulation and administrative frameworks can influence investments in the sector.

This is an important perspective. The regulatory framework for infrastructure – including access regulation and price regulation – plays a central role in enabling investment in future networks.

Any future political discussion on digital infrastructure should therefore also consider how regulation affects investments in capacity, security and resilience.

5. A different picture in international analyses

At the same time, the report’s conclusions differ from a number of international analyses.

Several analyses instead point to a significant increase in investment needs in digital infrastructure in the coming years. For example, a Boston Consulting Group analysis presented at TELE2025 in October 2025 and highlighted by DI Digital indicates that Europe risks falling behind in global digital competition if investments in networks and digital infrastructure are not increased.

A similar picture emerges from analyses by the European Commission, WIK and Copenhagen Economics, all of which highlight rising data traffic, AI, cloud, 5G/6G, data centres, and increasing cybersecurity and resilience requirements as key investment drivers.

The European Commission’s own analyses, for example, point to investment needs of at least EUR 174 billion in Europe to meet the digital 2030 targets.

Denmark’s digital position requires continued investment

Today, Denmark has one of the world’s most advanced digital infrastructures. This position has been built through many years of investment in high-capacity networks.

However, digital development is progressing rapidly.

If Denmark is to remain among the leading digital economies – while also ensuring robust networks in an increasingly uncertain world – continued investment in infrastructure will be essential.

This also requires a forward-looking basis for assessing the investments needed to secure Denmark’s digital future.