Rocketing AI demand sees Lumen light up custom networks division

One of the key networking trends of recent years has been the uptake of artificial intelligence (AI) in infrastructure across the world, and in the latest and very clear example of this trend, Lumen Technologies today announced it has secured $5bn in new business driven by major demand for connectivity fuelled by AI and has opened a custom networks division to manage its portfolio of private connectivity fabric solutions.

Offering further details on the need to create a new line, the company – which offers metro connectivity to long-haul data transport to edge cloud, security and managed service capabilities – said large businesses across industry sectors were actively seeking to secure fibre capacity quickly. It added that booming AI adoption was seeing this resource increasingly become valuable and potentially limited.

Just days ago, Lumen inked an agreement with global materials giant Corning Incorporated to be its preferred partner for a “substantial” supply of next-generation fibre-dense optical cable to more than double its US intercity fibre miles. Most significantly, this will also offer extra capacity to major cloud datacentres as they try to stay ahead of AI workloads and high-bandwidth applications fuelled by massive amounts of data.

Last month, Lumen announced a strategic partnership to use the Microsoft Cloud to drive its digital transformation while simultaneously expanding Microsoft’s network capacity and capability to meet the growing demand on its datacentres due to AI.

And with other areas considered, to address these “tremendous” demands, Lumen said it would more than double its intercity network miles over the next five years, while also providing access to a significant amount of installed dark fibre.

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

Launching the custom networks division is seen as crucial for not only addressing AI workloads, but also addressing additional interest from hyperscalers and other large organisations. The new division will provide customised network solutions that include dark fibre, custom fibre routes and digital services that securely connect companies’ datacentres to protect data and support AI-intensive workloads. Lumen may also operate and maintain the network as part of its services.  

Lumen is currently in active discussions with customers to secure another $7bn in sales opportunities to meet the increased customer demand.

“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 Kate Johnson, president and CEO of 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.”

As it was announcing the reorganisation, Lumen also revealed its second-quarter results for the current financial year. For the three-month period to 30 June 2024, it reported a net loss of $49m, substantially up on the $8.74m loss for the second quarter of 2023. Total revenue was $3.27bn, tumbling by 10.71% compared with the same quarter a year ago.