DENVER — On August 5, Lumen Technologies (NYSE: LUMN) announced it has secured $5 billion in new business, driven by the growing demand for connectivity due to artificial intelligence (AI). Companies across various sectors have been rapidly seeking to secure fiber capacity as it becomes increasingly valuable and potentially scarce. In response to this surge in demand, Lumen also facilitated discussions with customers about an additional $7 billion in potential sales.
In a separate development, Lumen, formerly CenturyLink, announced in June 2023 its decision to donate its 800,000-square-foot campus in Monroe, Louisiana, to the University of Louisiana Monroe. The donation was completed on July 1, 2023, and the campus has been renamed the Clarke M. Williams Innovation Center. This new facility serves as a “dynamic event space designed to foster collaboration and growth among the university, the community, and innovators in Northeast Louisiana.” The donation reflects Lumen’s shift to hybrid and remote work models, which rendered the campus largely unused.
Lumen’s presence in Monroe dates back to the 1970s. The company opened its Technology Center for Excellence there in 2015, which employed over 2,500 people. By 2020, Lumen had more than 1,700 employees in Louisiana. However, by April 2023, most of the executive staff had departed Monroe, reducing the local workforce by 800.
To address the growing demand for connectivity, including recent developments like Microsoft’s announcement, Lumen plans to more than double its intercity network miles over the next five years. The company will also expand access to its installed dark fiber. Additionally, Lumen has secured an agreement with Corning to be its preferred partner for next-generation fiber-dense cables, which will support the increased data processing needs of AI.
“The AI economy is transforming business operations, and companies recognize the need for robust network infrastructure to manage current and future data demands,” said Kate Johnson, president and CEO of Lumen Technologies, in a press release. “Our partners are choosing us for our AI-ready infrastructure and extensive network. This marks the beginning of a major expansion in the internet landscape for Lumen.”
To manage its portfolio of Private Connectivity Fabric℠ solutions and cater to growing interest from hyperscalers and large organizations, Lumen has established a new Custom Networks division. This division will offer customized network solutions, including dark fiber, tailored fiber routes, and digital services, to securely connect data centers and support AI-intensive workloads. Lumen may also handle the operation and maintenance of these networks as part of its services.
As of July 2024, Lumen ranked No. 292 on the Fortune 500 List.
