Information
The community operator says it has secured $5 billion-worth of offers from cloud and tech corporations searching for connectivity for his or her AI knowledge centres
Because the demand for generative AI providers soars, international tech giants are racing to deploy the essential knowledge centres that underpin the brand new know-how. The size of their funding has been monumental; based on a report from GlobalData, funding by the info centre funding by the massive 5 – Microsoft, Amazon, Meta, Alphabet (Google), and Apple – has risen to $37 billion in 2024, up from $8.8 billion final 12 months.
All of those new knowledge centres will must be linked to nationwide spine fibre networks and this, as evidenced by at present’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 know-how gamers, however is actively in discussions associated to an extra $7 billion.
Whereas specifics of the offers in query weren’t revealed, they reportedly embrace the main contract secured final month with Microsoft to assist the cloud large increase capability for its AI knowledge centres.
Illustation of Lumen’s Personal Connectivity Cloth℠
“The AI economic system is altering enterprise operations, and firms are recognizing they want highly effective community infrastructure to handle the unprecedented knowledge flows at present 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 only the start of a major 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 more in-depth have a look at its personal construction, with the corporate additionally asserting at present that it’s carving out a brand new Customized Networks division to raised handle its portfolio of personal community providers. These providers embrace managed community providers, darkish fibre infrastructure, customized fibre routes, and safe connections for knowledge centres.
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