Lumen expands network infrastructure to meet growing AI demand

DENVER - Lumen Technologies (NYSE:LUMN), a telecommunications company with $12.82 billion in revenue and a market capitalization of $5.86 billion, is making significant progress on its multi-year network expansion project aimed at supporting increasing AI workload requirements, according to a company press release issued Monday. According to InvestingPro data, the company maintains strong operational metrics with $3.24 billion in EBITDA.

The telecommunications company plans to add 34 million new intercity fiber miles by the end of 2028, which would bring its total to 47 million intercity fiber miles. This expansion represents more than doubling the size of Lumen’s U.S. network infrastructure. With a healthy current ratio of 2.13, InvestingPro analysis shows the company’s liquid assets adequately support such ambitious expansion plans.

In 2025, Lumen has already deployed over 2.2 million new intercity fiber miles and is projected to reach 16.6 million total intercity fiber miles by year end. The company is using next-generation fiber optic cable from Corning that fits twice the fiber into existing conduit.

Construction is underway at 176 In-Line Amplifier sites, which function as signal boosters along the network with up to triple the power density compared to traditional amplifier shelters. Lumen has also completed conduit deployments across 55 additional routes, expanding its ability to add and control fiber.

The company has added 5.9+ Pbps of total capacity to its network this year and allocated more than $100 million to bring high-speed connectivity up to 400Gbps across clouds, data centers, and metropolitan areas. Lumen’s 400G-enabled network now spans more than 100,000 route miles.

"AI is fueling a surge in network demand like we’ve never seen, and Lumen is building the backbone to meet it," said Kye Prigg, executive vice president of enterprise operations at Lumen Technologies, in the press release.

Lumen’s Private Connectivity Fabric is designed specifically for AI workloads, using fiber with 25% less optical loss than competitors and 60% more capacity than traditional designs, according to the company.

In other recent news, Lumen Technologies has introduced Wavelength RapidRoutes, a new service providing 100G and 400G wavelength connections with a 20-day delivery service level agreement. This initiative is designed to tackle connectivity challenges by reducing the typically lengthy provisioning periods for wavelength services. Additionally, Lumen Technologies has completed a $425 million notes offering through its subsidiary, Level 3 Financing, Inc., to refinance existing debt. The proceeds, along with cash on hand, will be used to redeem $373 million of its 10.750% First Lien Notes due 2030, covering the redemption premium and related expenses. This new issuance of 7.000% First Lien Notes due 2034 adds to the $2 billion previously issued in 2025, forming a single series with the same terms. These developments reflect Lumen’s ongoing efforts to streamline its financial structure and enhance its service offerings.

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