Lumen Technologies and Prometheus Hyperscale Join Forces for Sustainable Data Solutions
Lumen Technologies, Inc. (LUMN) has teamed up with Prometheus Hyperscale to improve the connectivity of their energy-efficient data centers. This alliance responds to the increasing need for artificial intelligence (AI), big data, and cloud computing, while also addressing environmental concerns in the AI sector. Both companies are dedicated to driving innovation and promoting sustainable practices, aiming to set a new standard for AI-driven data centers in the future.
Prometheus Hyperscale is integrating Lumen’s Private Connectivity Fabric (PCF), which includes optimized network routes, Dedicated Internet Access (DIA), and robust Distributed Denial of Service (DDoS) protection. This enhanced network will support high-density computing at Prometheus facilities, ensuring the delivery of efficient, scalable data centers that align with renewable energy and carbon-neutral goals. Lumen’s high-performance infrastructure is set to cater to AI workloads at the Wyoming facility and future sites across the U.S.
Moreover, Prometheus has been a leader in adopting renewable energy and sustainable cooling technologies, coupled with AI-driven energy optimization. Its facility in Aspen, WY is an illustration of its commitment to minimizing environmental impact while providing exceptional computational power for AI businesses.
Collaborating with Lumen not only enhances connectivity for AI applications but also reinforces Prometheus’s mission to create some of the most sustainable data centers globally. Notably, Prometheus’s Evanston campus is expected to be one of the largest data centers worldwide, scheduled to launch by late 2026.
Lumen Technologies, Inc. Price and Consensus
Lumen Technologies, Inc. price-consensus-chart | Lumen Technologies, Inc. Quote
AI Surge Fuels Growth in LUMN Stock
The rising demand for Lumen’s PCF solutions, driven by the rapid growth of AI, marks a positive trend for the company. Lumen has recently landed an additional $3 billion in PCF contracts, increasing its total to $8 billion in new sales since June 2024. As AI requirements escalate, major companies from various sectors are urgently seeking fiber capacity, making it increasingly valuable and potentially limited.
Lumen has secured significant partnerships with leading tech firms for its PCF solutions. In November 2024, it announced a collaboration with Alphabet’s GOOGL Google Cloud, aiming to enhance proactive data insights and AIOps across its network. By utilizing Google Cloud’s databases and the BigQuery analytics platform, Lumen has developed a Digital Twin to gain real-time insights across its network. Alphabet has chosen Lumen to strengthen its network capabilities and support the rising demand for Google Cloud services, fostering AI innovation.
Earlier, Lumen collaborated with Amazon.com, Inc. (AMZN) to improve data center connectivity and optimize cloud technology delivery. This partnership will leverage Amazon Web Services (AWS) technology, including AI and machine learning, to modernize Lumen’s applications and systems. In return, LUMN will provide fiber connectivity for AWS data centers, facilitating enterprise clients in developing and implementing scalable AI applications.
The company also partnered with Meta Platforms, Inc. (META) to enhance network capabilities, allowing for dedicated interconnection to support Meta’s advanced infrastructure.
There has been a notable increase in demand for Lumen’s Waves and IP services among enterprise and mid-market clients, with year-to-date sales rising by 18% for IP and 25% for Waves. Lumen has broadened its high-speed IP and 400-gig Wave services into new markets and anticipates further expansion. Additionally, the company has raised its 2024 free cash flow guidance to $1.2-$1.4 billion, reflecting optimistic cash flows driven by PCF growth.
LUMN’s Zacks Rank and Stock Performance
Currently, Lumen holds a Zacks Rank of #3 (Hold). Over the past year, the company’s shares have surged by 238.4%, outperforming the industry’s growth of 54.8%. For a complete list of today’s Zacks #1 (Strong Buy) Rank stocks, check here.
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