Lumen Expands Multi-Billion AI Network Amid Surging Demand

Core Insights - Lumen Technologies is significantly advancing its infrastructure to support the AI-driven economy by planning to deploy 34 million new intercity fiber miles by 2028, having already delivered millions of new fiber miles in 2025 to meet AI workload demands [1][2] Group 1: Infrastructure Development - In 2025, Lumen deployed over 2.2 million new intercity fiber miles, with a total expected to reach 16.6 million by year-end, utilizing next-generation Corning fiber that doubles capacity in existing conduits [2] - Construction is ongoing at 176 In-Line Amplifier (ILA) sites, enhancing signal strength with up to three times the power density of traditional ILAs, designed for future scalability [2][3] - The company completed IRU deployments across 55 additional routes, securing long-term rights to underground pathways, which enhances its fiber management capabilities [3] Group 2: Network Capacity and Performance - The network's total capacity increased by over 5.9 petabits per second in 2025, preparing it to handle high data volumes [3][10] - Lumen has allocated over $100 million to upgrade connectivity to 400Gbps across various networks, creating a high-performance pipeline for AI workloads, with the 400G-enabled network spanning over 100,000 route miles [4][10] Group 3: Growth Strategy and Market Demand - Lumen's growth strategy focuses on its Private Connectivity Fabric (PCF), which offers 25% less optical loss and 60% more capacity than traditional designs, serving 97% of U.S. business demand with ultra-low latency [5][10] - The demand for PCF solutions is rising, with Lumen securing $9 billion in PCF deals in Q2, driven by the urgent need for fiber capacity among large companies in various industries [6] - Recent initiatives like Wavelength RapidRoutes provide enterprises with faster high-capacity connections, reducing setup time from months to a 20-day delivery SLA [7] Group 4: Financial Outlook - For 2025, Lumen expects adjusted EBITDA to be between $3.2 billion and $3.4 billion, with expectations to report near the high end of this range due to improved cost controls and performance from legacy services [8]