Lumen Expands Multi-Billion AI Network Amid Surging Demand

Lumen Technologies, Inc. LUMN is making major strides in building the backbone for the artificial intelligence (AI)-driven economy, with plans to deploy 34 million new intercity fiber miles by 2028. The company has already delivered millions of new fiber miles, expanded network capacity and enhanced high-speed connectivity in 2025 to meet the growing demands of AI workloads.

In 2025 so far, Lumen made significant progress toward its goal of reaching 47 million intercity fiber miles. The company deployed more than 2.2 million new intercity fiber miles, over 2,500 route miles. It is on track to reach 16.6 million total miles by year-end, using next-generation Corning fiber that fits twice the capacity in the existing conduit. Construction is underway at 176 In-Line Amplifier (ILA) sites, where new shelters act as powerful signal boosters with up to three times the power density of traditional ILAs, designed for easy updates and future scalability.

Lumen Technologies, Inc. Price and Consensus

Lumen Technologies, Inc. price-consensus-chart | Lumen Technologies, Inc. Quote

To further strengthen its position, Lumen also expanded its conduit access by completing IRU deployments across 55 additional routes, securing long-term rights to underground pathways and enhancing its ability to add and manage fiber. The network’s total capacity grew more than 5.9 petabits per second this year, preparing it to handle high volumes of data.

Additionally, the company has earmarked more than $100 million to upgrade connectivity to 400Gbps across clouds, data centers and metro networks, creating a high-performance pipeline for AI workloads. The Lumen 400G-enabled network now spans more than 100,000 route miles, providing seamless, high-speed connectivity for enterprise customers.

Lumen’s growth strategy centers on its Private Connectivity Fabric (PCF), which uses fiber with 25% less optical loss and 60% more capacity than traditional designs. With latency under five milliseconds at the edge and routes connecting more than 50 major cities, PCF forms North America’s largest ultra-low-loss intercity fiber network, serving up to 97% of U.S. business demand.

Demand for PCF solutions is accelerating. Driven by significant AI-fueled connectivity demand, Lumen has secured a total of $9 billion in PCF deals in the second quarter. As AI needs surge, large companies across various industries are urgently seeking fiber capacity, which is becoming highly valuable and potentially scarce. Lumen has inked deals with various tech giants like Microsoft, Amazon, Google Cloud and Meta Platforms to provide the network capabilities for AI innovation.
Investments in PCF are expected to create future revenue streams and strengthen Lumen’s position as a leading infrastructure player going forward.

Recently, Lumen launched Wavelength RapidRoutes, a faster way for enterprises to get high-capacity connections. Unlike traditional wavelength services that take months to set up, Lumen offers ready-to-deploy network paths with a 20-day delivery SLA—helping businesses scale quickly with less delay and complexity.

For 2025, adjusted EBITDA is expected to be between $3.2 billion and $3.4 billion, with Lumen expecting to report numbers near the high end of the range. This is mainly due to progress on M&S, improved cost controls and improved performance from legacy services. Adjusted EBITDA includes the impact from investments in transformation, higher startup costs for PCF sales and legacy revenue declines. Lumen expects EBITDA to rebound in 2026.

LUMN’s Zacks Rank and Stock Price Performance

Currently, LUMN carries a Zacks Rank #3 (Hold). In the past six months, shares have surged 30.5% compared with the Zacks Diversified Communication Services industry’s growth of 20.6%.

Key Picks From the Utilities Space

Some better-ranked stocks from the broader technology space are Portland General Electric Company POR, NextEra Energy, Inc. NEE and Exelon Corporation EXC. POR, NEE and EXC carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

POR’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 1.69%. In the last reported quarter, Portland General Electric delivered an earnings surprise of 1.54%. Its shares have declined 10% in the past year.

NextEra Energy earnings beat the consensus estimate in each of the trailing four quarters, with the average surprise being 3.51%. NEE’s long-term earnings growth rate is 7.9%. Its shares have increased 3.3% in the past six months.

Exelon’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.02%. In the last reported quarter, EXC delivered an earnings surprise of 5.41%. EXC’s long-term earnings growth rate is 6.3%. Its shares have inched up 8.5% in the past year.

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