Microsoft Partners with Lumen to Boost Data Center Capacity

Microsoft announced an alliance with Lumen Technologies to increase the capacity of its data centers to meet the growing increase for workloads generated by artificial intelligence.

This collaboration will enable Microsoft to utilize Lumen's infrastructure, including the Private Connectivity Fabric custom network, Microsoft announced through a press release. This customized network, which includes dedicated access to existing fiber in Lumen's network, installation of new fiber on existing and new routes, and use of Lumen's new digital services, will improve the capacity, performance, stability and speed of the next generation of Microsoft Azure applications, Copilot, and other platforms.

“AI is transforming our daily lives and fundamentally changing the way businesses operate,” said Erin Chapple, corporate vice president, Azure Core Product and Design, Microsoft. “We are focused on both the impact and opportunities for customers around AI today, and a generation ahead when it comes to our network infrastructure.”

Lumen will benefit from this partnership by adopting Microsoft AI and Cloud technology to advance its digital transformation process. According to the announcement, the company plans to migrate and modernize its workloads to Microsoft Azure, using Microsoft Entra solutions to protect access and prevent identity attacks. This is expected to improve Lumen's cash flow by more than US$20 million over the next year, contributing to its recovery efforts following its debt restructuring in March, as reported by DPL.

Amy Hood, Microsoft's chief financial officer, noted in April that demand for infrastructure exceeds the company's current offering. She added that the acceleration in AI workloads is driving technology companies to anticipate and respond to future demands. 

After reporting its Q1 2024 financial results, Microsoft announced a significant increase in its spending on Cloud infrastructure, joining companies such as Nvidia, Amazon Web Services, Google, and Apple, which are also increasing their investments in data centers. 

According to Synergy Research Group, the number of data centers operated by hyperscale providers has doubled in the last four years, with more than 1,000 installations today. It is expected that the average capacity of hyperscale data centers to be opened over the next six years will more than double that of current operational hyperscale data centers. Amazon, Microsoft and Google together account for 60% of all hyperscale data center capacity.

“We are preparing for a future where AI is the driving force for innovation and growth, and where a powerful network infrastructure is essential for businesses to thrive,” said Kate Johnson, president and CEO, Lumen Technologies. “Microsoft has an ambitious vision for AI and this level of innovation requires a network that can make it happen.”