Lumen Technologies, Inc. (LUMN Quick QuoteLUMN - Free Report) announced it has secured $5 billion in new business due to significant AI-fueled connectivity demand. Additionally, Lumen is actively negotiating with customers to secure another $7 billion in sales opportunities to meet growing customer needs.

Following the announcement, shares of LUMN surged 46.7% in the pre-trading session on Aug 6.

As AI needs surge, large companies across various industries are urgently seeking fiber capacity, which is becoming both highly valuable and potentially scarce. Recently, Microsoft chose Lumen to enhance its network capacity and support the development of next-generation applications for its global platform customers. In response to this substantial demand, Lumen plans to more than double its intercity network miles over the next five years and offer access to a substantial amount of installed dark fiber.

To further support this expansion, Lumen secured its largest cable purchase agreement with Corning Incorporated, which will ensure 10% of Corning’s global fiber capacity for Lumen over the next two years, advancing AI capabilities for cloud data centers, enterprises and public agencies.

Lumen highlighted how the AI economy is reshaping business operations, driving the need for powerful network infrastructure to handle both current and future data demands. Lumen’s AI-ready infrastructure and broad network are attracting its partners, signaling the beginning of a major opportunity for Lumen.

Lumen has also established a new Custom Networks division to oversee its Private Connectivity Fabric solutions. This division will also address rising interest from hyperscalers and other large organizations. The Lumen Private Connectivity Fabric enables users to create a custom network architecture designed to meet the demands of AI with the necessary flexibility, scalability and security. 

This new division will offer tailored network solutions, including dark fiber, custom fiber routes and digital services, to securely connect data centers, safeguard data and support AI-intensive workloads. 

Lumen, a global communications services provider, offers networking, edge cloud, collaboration and cybersecurity solutions, along with managed services, to enhance business efficiency and create seamless, user-friendly technology environments.

Lumen currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 131.6% compared with the sub-industry’s growth of 22.9%.

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