Corning and Lumen Reach Supply Agreement on Next-Generation Fiber-Optic Cable to Support Data Center AI Demands

Rhea-AI Summary

Lumen Technologies (NYSE: LUMN) has announced a significant agreement with Corning Incorporated (NYSE: GLW) for the supply of next-generation optical cable. This deal will more than double Lumen's U.S. intercity fiber miles, providing substantial capacity to major cloud data centers to meet the increasing demands of AI workloads and high-bandwidth applications. The agreement reserves 10% of Corning's global fiber capacity for each of the next two years.

This partnership aims to address the network infrastructure needs of major data center operators, including Microsoft, which recently announced an investment with Lumen. The new fiber-dense cable will enable Lumen to fit two-to-four times the amount of fiber into existing conduits, marking the first outside-plant deployment of Corning's new gen-AI fiber and cable system.

Positive

• Agreement will more than double Lumen's U.S. intercity fiber miles
• Reserves 10% of Corning's global fiber capacity for next two years
• Positions Lumen as a preferred partner for AI-driven network infrastructure
• Enables fitting 2-4 times more fiber into existing conduits
• Supports rising demand from major data center operators like Microsoft

Negative

• None.

• Agreement reserves 10% of Corning's global fiber capacity for each of the next two years to interconnect AI-enabled data centers
  
  
• Agreement will more than double Lumen's intercity network miles to unlock the next phases and capabilities of AI for cloud data centers, enterprises, and public agencies

CORNING, N.Y. and DENVER, Aug. 1, 2024 /PRNewswire/ -- Lumen Technologies (NYSE: LUMN) today announced an agreement with Corning Incorporated (NYSE: GLW) for a substantial supply of next-generation optical cable. This fiber-dense cable will more than double Lumen's U.S. intercity fiber miles, offering significant capacity to major cloud data centers racing to stay ahead of AI workloads and high bandwidth applications fueled by massive amounts of data.   

The rapid advancement of generative artificial intelligence requires at least 10 times more fiber connections within data centers, as well as a robust fiber network to transmit information between these data hubs. With this agreement, Lumen reserves 10% of Corning's global fiber capacity for each of the next two years.

The agreement, Lumen's largest cable purchase, will equip Lumen to meet the network infrastructure needs of major data center operators for years to come, including Microsoft, which announced last week that it's investing with Lumen to support the rising demand on its data centers.   

"Lumen is the network that delivers AI. The rise of AI is driving technology companies to quickly secure fiber and bandwidth before their competition," said Kate Johnson, president and CEO, Lumen Technologies. "With Corning's innovative solutions, we are building the backbone of the AI economy. This partnership gives Lumen status as a preferred partner and secures a significant supply of next-generation fiber today and in the future."

Lumen has the largest ultra-low-loss intercity fiber network in North America. Its U.S. intercity network includes diverse routes to more than 50 major cities across the country. Lumen distinguishes its network from others in the industry by continuously upgrading its infrastructure using a multi-conduit system, allowing for the quick deployment of the latest fiber technology. 

"As generative AI increases bandwidth requirements between data centers, we're pleased to reach an agreement with Lumen Technologies to provide our latest optical fiber and cable innovations to facilitate Lumen's build of a new network to interconnect AI-enabled data centers," said Wendell P. Weeks, chairman and CEO, Corning Incorporated. "This marks the first outside-plant deployment of Corning's new gen-AI fiber and cable system, which will enable Lumen to fit anywhere from two-to-four times the amount of fiber into their existing conduit."

To properly power AI with capacity, performance, stability and speed, Lumen is creating a digital platform on top of its physical network allowing cloud-like consumption of network services. Lumen's Private Connectivity Fabric℠ is a custom network that includes dedicated access to existing fiber in the Lumen network, the installation of new fiber on existing and new routes, and access to Lumen's digital services. 

Visit Corning's media resource center for information, videos, and images.

About Lumen Technologies
Lumen connects the world. We are igniting business growth by connecting people, data, and applications – quickly, securely, and effortlessly. Everything we do at Lumen takes advantage of our network strength. From metro connectivity to long-haul data transport to our edge cloud, security, and managed service capabilities, we meet our customers' needs today and as they build for tomorrow. For news and insights visit news.lumen.com, LinkedIn: /lumentechnologies, Twitter: @lumentechco, Facebook: /lumentechnologies, Instagram: @lumentechnologies, and YouTube: /lumentechnologies. 

About Corning Incorporated
Corning (www.corning.com) is one of the world's leading innovators in materials science, with a 170-year track record of life-changing inventions. Corning applies its unparalleled expertise in glass science, ceramic science, and optical physics along with its deep manufacturing and engineering capabilities to develop category-defining products that transform industries and enhance people's lives. Corning succeeds through sustained investment in RD&E, a unique combination of material and process innovation, and deep, trust-based relationships with customers who are global leaders in their industries. Corning's capabilities are versatile and synergistic, which allows the company to evolve to meet changing market needs, while also helping our customers capture new opportunities in dynamic industries. Today, Corning's markets include optical communications, mobile consumer electronics, display, automotive, solar, semiconductors, and life sciences.

 

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SOURCE Lumen Technologies

FAQ

What is the significance of Lumen's agreement with Corning for LUMN stock?

The agreement positions Lumen (LUMN) to meet growing AI-driven network demands, potentially boosting its market share and revenue in the data center connectivity sector.

How will the Corning agreement affect Lumen's (LUMN) network capacity?

The agreement will more than double Lumen's U.S. intercity fiber miles, significantly increasing its network capacity to support AI workloads and high-bandwidth applications.

What percentage of Corning's global fiber capacity has Lumen (LUMN) reserved?

Lumen has reserved 10% of Corning's global fiber capacity for each of the next two years.

How does this agreement relate to Lumen's (LUMN) recent partnership with Microsoft?

The agreement with Corning will equip Lumen to meet the network infrastructure needs of major data center operators, including Microsoft, which recently announced an investment with Lumen.