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The network operator says it has secured $5 billion-worth of deals from cloud and tech companies seeking connectivity for their AI data centres
As the demand for generative AI services soars, global tech giants are racing to deploy the crucial data centres that underpin the new technology. The scale of their investment has been monumental; according to a report from GlobalData, investment by the data centre investment by the big five – Microsoft, Amazon, Meta, Alphabet (Google), and Apple – has risen to $37 billion in 2024, up from $8.8 billion last year.
All of these new data centres will need to be connected to national backbone fibre networks and this, as evidenced by today’s announcement, can prove hugely profitable for national fibre network operators like Lumen.
Lumen says it has not only secured $5 billion in new business from major cloud and technology players, but is actively in discussions related to a further $7 billion.
While specifics of the deals in question were not revealed, they reportedly include the major contract secured last month with Microsoft to help the cloud giant expand capacity for its AI data centres.
Illustation of Lumen’s Private Connectivity Fabric℠
“The AI economy is changing business operations, and companies are recognizing they need powerful network infrastructure to manage the unprecedented data flows today and the demand in the future,” said Kate Johnson, president and CEO, Lumen Technologies. “Our partners are turning to us because of our AI-ready infrastructure and expansive network. This is just the beginning of a significant opportunity for Lumen, one that will lead to one of the largest expansions of the internet ever.”
To help facilitate this surge in demand, Lumen announced a deal with fibre cable manufacturer Corning last week reserving 10% of the company’s production capacity for the next two years.
This, Lumen says, will give them the capacity they need to “more than double” their US intercity fibre miles over the next five years.
All of this dealmaking has seemingly made Lumen take a closer look at its own structure, with the company also announcing today that it is carving out a new Custom Networks division to better manage its portfolio of private network services. These services include managed network services, dark fibre infrastructure, custom fibre routes, and secure connections for data centres.
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