Zayo is set to expand its footprint in response to increasing demand for AI workloads, with plans to build over 5,000 new long-haul fiber route miles. This investment aims to address a projected bandwidth gap in the U.S., as data center capacity could ramp up by as much as 6 times by 2030.

Steve Smith, Zayo's Chief Executive Officer, emphasized the urgency of these developments, noting that the demand for long-haul routes has already surpassed $1 billion in AI-driven deals in 2024, with an additional $3 billion in potential projects waiting in the pipeline. “As the complexity of long-haul builds continues to be prohibitive to many providers, Zayo remains the only company building long-haul routes at scale to lead this next phase of infrastructure growth,” Smith stated.

To support escalating AI requirements, Zayo will construct five new and enhance seven existing routes, facilitating direct and scalable connections between major data centers and burgeoning market areas. The new routes will include connections from Chicago to Columbus, Atlanta to Ashburn, and Minneapolis to Chicago, among others.

Zayo's recent history shows a strong push toward infrastructure expansion, completing 15 long-haul routes over the past five years, totaling more than 5,000 fiber route miles. Additionally, the company is improving its long-haul deployment capabilities by expanding its team and introducing new tools and workflows aimed at increasing efficiency.

Research conducted by Zayo suggests that without additional fiber infrastructure, a bandwidth shortage could hinder customer access to AI technologies. Current U.S. data center capacity, estimated at 25 GW, is expected to reach between 65 GW and 148 GW by 2030, largely due to AI demand. As leading AI providers migrate to secondary markets for competitive power costs, Zayo aims to ensure fiber infrastructure is established to meet this growing need.

The company's ongoing commitment to network expansion is evident, boasting 16.5 million fiber miles across North America, with continual upgrades to support advanced capabilities. Zayo is on track to fully enable its North American network with 400G technology by the end of 2025.