Information
The community operator says it has secured $5 billion-worth of offers from cloud and tech firms looking for connectivity for his or her AI information centres
Because the demand for generative AI providers soars, international tech giants are racing to deploy the essential information centres that underpin the brand new expertise. The size of their funding has been monumental; in accordance with a report from GlobalData, funding by the information centre funding by the large 5 – Microsoft, Amazon, Meta, Alphabet (Google), and Apple – has risen to $37 billion in 2024, up from $8.8 billion final yr.
All of those new information centres will have to be related to nationwide spine fibre networks and this, as evidenced by in the present day’s announcement, can show massively worthwhile for nationwide fibre community operators like Lumen.
Lumen says it has not solely secured $5 billion in new enterprise from main cloud and expertise gamers, however is actively in discussions associated to an additional $7 billion.
Whereas specifics of the offers in query weren’t revealed, they reportedly embody the main contract secured final month with Microsoft to assist the cloud big broaden capability for its AI information centres.
Illustation of Lumen’s Personal Connectivity Material℠
“The AI financial system is altering enterprise operations, and firms are recognizing they want highly effective community infrastructure to handle the unprecedented information flows in the present day and the demand sooner or later,” stated Kate Johnson, president and CEO, Lumen Applied sciences. “Our companions are turning to us due to our AI-ready infrastructure and expansive community. That is just the start of a big alternative for Lumen, one that may result in one of many largest expansions of the web ever.”
To assist facilitate this surge in demand, Lumen introduced a take care of fibre cable producer Corning final week reserving 10% of the corporate’s manufacturing capability for the subsequent two years.
This, Lumen says, will give them the capability they should “greater than double” their US intercity fibre miles over the subsequent 5 years.
All of this dealmaking has seemingly made Lumen take a better have a look at its personal construction, with the corporate additionally asserting in the present day that it’s carving out a brand new Customized Networks division to higher handle its portfolio of personal community providers. These providers embody managed community providers, darkish fibre infrastructure, customized fibre routes, and safe connections for information centres.
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