DENVER - Lumen Technologies (NYSE: LUMN) has announced a significant expansion of its network infrastructure, responding to a surge in demand for connectivity driven by advancements in artificial intelligence (AI). The company has recently secured $5 billion in new business and is in talks to potentially add another $7 billion in sales opportunities, reflecting the growing need for robust network capabilities to support AI applications.
In an effort to meet this demand, Lumen plans to more than double its intercity network miles within the next five years. This expansion will include access to a substantial amount of dark fiber – unused optical fiber that can be leased to increase bandwidth. The company has also entered into an agreement with Corning (NYSE:GLW) as its preferred partner for the next-generation fiber-dense cable, which is essential for handling the increased data processing demands of AI technologies.
Kate Johnson, president and CEO of Lumen Technologies, stated, "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." She added, "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."
In response to the growing interest from hyperscalers and large organizations, Lumen has formed a new Custom Networks division. This division will focus on providing tailored network solutions that include dark fiber, custom fiber routes, and digital services. These services are designed to securely connect companies' data centers, safeguard data, and support AI-intensive workloads. Lumen may also offer operational and maintenance services for these networks.
The company's announcement comes on the back of recent developments, including a partnership with Microsoft (NASDAQ:MSFT), which underscore the critical role of high-capacity, reliable network infrastructure in the evolving AI landscape. The expansion and creation of the Custom Networks division aim to position Lumen as a key player in supporting the infrastructure needs of businesses investing in AI technology.
This news is based on a press release statement from Lumen Technologies.
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