Uniti Announces New Montgomery Infrastructure Award with Large Hyperscaler
Uniti Group Inc. (Nasdaq: UNIT) has secured a new 20-year contract with a major hyperscale customer in Montgomery, Alabama. This agreement involves the construction of 90 route miles of new multi-conduit systems and high-strand count fiber cables. The infrastructure will connect key data centers and points-of-presence in a ring configuration within the Montgomery metropolitan area.
The project will enable long-haul routes to connect to the metro infrastructure from all directions, including the recently announced route between Mobile and Montgomery. Delivery of the fiber rings is expected to occur throughout late 2025 and early 2026. Uniti's President of Wholesale & Strategic Accounts, Greg Ortyl, highlighted the growing demand for AI-optimized infrastructure and Uniti's operational presence in areas with suitable land and power availability.
- Secured a new 20-year contract with a major hyperscale customer
- Expanding network infrastructure by 90 route miles in Montgomery, Alabama
- Strengthening presence in existing enterprise market
- Aligning with growing demand for AI-optimized infrastructure
- None.
Insights
This new contract represents a significant development for Uniti, showcasing its ability to secure long-term, high-value agreements with major tech players. The 20-year contract with a strategic hyperscale customer provides Uniti with a stable revenue stream and positions the company well in the growing market for AI-optimized infrastructure.
The project's scope, involving 90 route miles of new multi-conduit systems and high-strand count fiber cables, indicates a substantial infrastructure investment. This expansion in Montgomery, Alabama, one of Uniti's existing enterprise markets, strengthens the company's competitive position and potential for future growth in the region.
While specific financial details are not disclosed, the long-term nature of the contract and the scale of the infrastructure build-out suggest a positive impact on Uniti's future revenue and earnings. Investors should view this as a strategic move that aligns with industry trends towards increased data center connectivity and AI-driven demand.
The announcement highlights Uniti's strategic positioning in the rapidly evolving AI infrastructure landscape. The ring configuration design for the new fiber network is particularly noteworthy, as it offers enhanced reliability and redundancy - critical factors for hyperscale customers with demanding uptime requirements.
The connection of key data center locations and points-of-presence in a ring topology, combined with the ability to link long-haul routes from all directions, demonstrates Uniti's forward-thinking approach to network design. This infrastructure will likely support not only current needs but also future expansion and increased data traffic demands driven by AI applications.
The expected delivery timeline spanning late 2025 to early 2026 suggests a significant project that will require careful planning and execution. Uniti's ability to deliver on this timeline will be important for maintaining customer satisfaction and potentially securing future contracts in this competitive space.
LITTLE ROCK, Ark., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) is pleased to announce a new 20-year contract award from a strategic hyperscale customer in Montgomery, Alabama, one of Uniti’s existing 30+ enterprise markets. Anchored by this hyperscaler contract award, Uniti will construct 90 route miles of new multi-conduit systems and high-strand count fiber cables.
This new route will connect key data center locations and points-of-presence in a ring configuration within the Montgomery metropolitan area. These rings will allow long-haul routes to connect to the metro infrastructure from all directions, including the route between Mobile and Montgomery that the company recently announced. Expected delivery of the fiber rings will take place throughout late 2025 and into early 2026.
“The demand for AI-optimized infrastructure continues to create a significant opportunity for Uniti where our operational presence aligns with availability of the required land and power,” commented Greg Ortyl, Uniti’s President of Wholesale & Strategic Accounts. “Uniti is proud to have our network team providing best-in-class delivery and network performance, making the decision to use Uniti that much easier for our customers.”
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended from time to time. Those forward-looking statements include all statements that are not historical statements of fact.
Words such as "anticipate(s)," "expect(s)," "intend(s)," “estimate(s),” “foresee(s),” "plan(s)," "believe(s)," "may," "will," "would," "could," "should," "seek(s)" and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained. Factors which could materially alter our expectations include, but are not limited to, the future prospects of Windstream, our largest customer; the ability and willingness of our customers to meet and/or perform their obligations under any contractual arrangements entered into with us, including master lease arrangements; the ability of our customers to comply with laws, rules and regulations in the operation of the assets we lease to them; the ability and willingness of our customers to renew their leases with us upon their expiration, and the ability to reposition our properties on the same or better terms in the event of nonrenewal or in the event we replace an existing tenant; the adverse impact of litigation affecting us or our customers; our ability to renew, extend or obtain contracts with significant customers (including customers of the businesses we acquire); the availability of and our ability to identify suitable acquisition opportunities and our ability to acquire and lease the respective properties on favorable terms; the risk that we fail to fully realize the potential benefits of acquisitions or have difficulty integrating acquired companies; our ability to generate sufficient cash flows to service our outstanding indebtedness and fund our capital funding commitments; our ability to access debt and equity capital markets; the impact on our business or the business of our customers as a result of credit rating downgrades and fluctuating interest rates; our ability to retain our key management personnel; changes in the U.S. tax law and other state, federal or local laws; covenants in our debt agreements that may limit our operational flexibility; other risks inherent in the communications industry and in the ownership of communications distribution systems, including potential liability relating to environmental matters and illiquidity of real estate investments; and additional factors described in our reports filed with the U.S. Securities and Exchange Commission.
Uniti expressly disclaims any obligation to release publicly any updates or revisions to any of the forward-looking statements set forth in this press release to reflect any change in its expectations or any change in events, conditions or circumstances on which any statement is based.
ABOUT UNITI
Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure and is a leading provider of fiber and other wireless solutions for the communications industry. As of June 30, 2024, Uniti owns approximately 142,000 fiber route miles, 8.6 million fiber strand miles, and other communications real estate throughout the United States. Additional information about Uniti can be found on its website at www.uniti.com.
SALES CONTACTS:
Ron Mudry, 727-421-0388
Senior Vice President, Chief Revenue Officer
ron.mudry@uniti.com
Greg Ortyl, 314-749-2478
President, Wholesale & Strategic Accounts
greg.ortyl@uniti.com
INVESTOR and MEDIA CONTACTS:
Paul Bullington, 251-662-1512
Senior Vice President, Chief Financial Officer & Treasurer
paul.bullington@uniti.com
Bill DiTullio, 501-850-0872
Vice President, Investor Relations & Treasury
bill.ditullio@uniti.com
This press release was published by a CLEAR® Verified individual.
FAQ
What is the new contract Uniti (UNIT) announced for Montgomery, Alabama?
When is the expected delivery date for Uniti's (UNIT) new fiber rings in Montgomery?
How does the new Montgomery infrastructure relate to Uniti's (UNIT) recent Mobile-Montgomery route announcement?
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