Lumen Technologies has secured deals worth $5bn from technology and cloud companies for its networking solutions. The US communications services provider also confirmed that it is engaged in ongoing negotiations to secure an additional $7bn in sales opportunities to address the heightened interest from customers. According to Lumen Technologies, the surge in artificial intelligence (AI) needs has prompted large companies across various sectors to seek additional fibre capacity, which is becoming increasingly scarce and valuable.
“The AI economy is changing business operations, and companies are recognising they need powerful network infrastructure to manage the unprecedented data flows today and the demand in the future,” said the firm’s president and CEO, Kate Johnson. “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.”
Lumen expanding rapidly
Among the company’s deals is a partnership with big tech company Microsoft, announced last month. Under the agreement, Lumen Technologies will leverage Microsoft Cloud to further advance its digital transformation. Microsoft will, in turn, engage the communications services provider to expand its network capacity and capability to meet the growing demand for its data centres.
Last week, Lumen Technologies also signed an agreement with Corning to provide the latter with a next-generation optical cable designed to support the intensified data processing requirements of AI technologies. This fibre-dense cable is expected to more than double Lumen’s US intercity fibre miles. It will also offer significant capacity to major cloud data centres that need to stay ahead of AI workloads and high bandwidth applications fuelled by massive amounts of data, said the communications services provider.
To meet the increasing demand, Lumen Technologies plans to more than double its intercity network miles over the next five years. The company will also expand access to a considerable amount of installed dark fibre. Additionally, Lumen Technologies has established a new Custom Networks division to manage its portfolio of private connectivity fabric solutions.
AI driving surge in demand for data centre services
This division will address growing interest from hyperscalers and other major organisations by offering tailored network solutions, including dark fibre, custom fibre routes, and digital services. The solutions will securely link data centres, safeguarding data and supporting AI-intensive workloads. Lumen Technologies may also provide operation and maintenance services for these networks as part of its offerings.
Lumen Technologies’ expansion of its infrastructure to meet the demands of the AI economy is parallel with other industry majors taking steps to address AI-driven data processing requirements. In June this year, Intel unveiled the Xeon 6 processor, a new AI chip specifically designed for data centres. This latest semiconductor succeeds the Xeon 5, which was released just six months prior. The semiconductor major claimed that the next-generation Xeon 6 chip offers enhanced energy efficiency and greater processing power compared to its predecessor.
Earlier this year, Google also announced its construction of a new UK data centre facility in Waltham Cross, Hertfordshire. The 33-acre site, which costs £790m, will add to Google’s expanding cloud computing capacity in the UK.
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