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The Lumen Growth Model:
Cloud 2.0 and the AI Economy
AI adoption marks a structural shift in enterprise infrastructure. As workloads distribute across clouds, data centers, and edge locations, network performance has emerged as the primary constraint on AI cost and scale—defined by bandwidth, latency, and programmability.
This transition, referred to as Cloud 2.0, requires purpose-built networks that behave like compute and storage, including:
• Massive bandwidth
• Low‑latency interconnect
• Programmable services
• Cloud on‑ramps
• Fiber scale
• Massive bandwidth
• Low‑latency interconnect
• Programmable services
• Cloud on‑ramps
• Fiber scale
• Massive bandwidth
• Low‑latency interconnect
• Programmable services
• Cloud on‑ramps
• Fiber scale
Lumen is positioned to lead this transition by combining one of the largest fiber networks in the U.S. with a rapidly scaling digital platform and connected ecosystem—enabling cloud-like economics with durable, low-cost growth.
This transition, referred to as Cloud 2.0, requires purpose-built networks that behave like compute and storage, including:
• Massive bandwidth
• Low‑latency interconnect
• Programmable services
• Cloud on‑ramps
• Fiber scale
Lumen is positioned to lead this transition by combining one of the largest fiber networks in the U.S. with a rapidly scaling digital platform and connected ecosystem—enabling cloud-like economics with durable, low-cost growth.
Why Now?
Public cloud spend is projected to double from 2025-2029, exceeding $1T1 annually. That growth is increasingly driven by AI workloads and infrastructure investment.
U.S. GenAI investment
expected by 20292
Hyperscaler investment
tagged for AI infrastructure in 20263
Lumen commitments
to date supporting AI data center connectivity
U.S. data center growth
up to 1 billion square feet by 20304
U.S. GenAI investment
expected by 20292
Hyperscaler investment
tagged for AI infrastructure in 20263
Lumen commitments
to date supporting AI data center connectivity
U.S. data center growth
up to 1 billion square feet by 20304
U.S. GenAI investment
expected by 20292
Hyperscaler investment
tagged for AI infrastructure in 20263
Lumen commitments
to date supporting AI data center connectivity
U.S. data center growth
up to 1 billion square feet by 20304
AI economics: Speed meets savings
Network performance directly determines AI efficiency—shaping how quickly data moves, how effectively GPUs are utilized and how AI systems scale.
≤5ms time-to-first-token
The defining AI performance metric for real-time AI and other advanced use cases—an emerging baseline requirement in the Cloud 2.0 era.
~420K in avoidable cost
At roughly $2,000 per hour for a 64-node GPU cluster, slow data movement can add ~$420K in avoidable costs in a single AI workload by leaving high-value compute idle.5
40x faster data movement
Transferring 1 petabyte of training data takes 222 hours at 10 Gbps vs. 6 hours at 400 Gbps, dramatically reducing time spent waiting for data.5
AI economics: Speed meets savings
Network performance directly determines AI efficiency—shaping how quickly data moves, how effectively GPUs are utilized and how AI systems scale.
≤5ms time-to-first-token
The defining AI performance metric for real-time AI and other advanced use cases—an emerging baseline requirement in the Cloud 2.0 era.
~420K in avoidable cost
At roughly $2,000 per hour for a 64-node GPU cluster, slow data movement can add ~$420K in avoidable costs in a single AI workload by leaving high-value compute idle.5
40x faster data movement
Transferring 1 petabyte of training data takes 222 hours at 10 Gbps vs. 6 hours at 400 Gbps, dramatically reducing time spent waiting for data.5
AI economics: Speed meets savings
Network performance directly determines AI efficiency—shaping how quickly data moves, how effectively GPUs are utilized and how AI systems scale.
≤5ms time-to-first-token
The defining AI performance metric for real-time AI and other advanced use cases—an emerging baseline requirement in the Cloud 2.0 era.
~420K in avoidable cost
At roughly $2,000 per hour for a 64-node GPU cluster, slow data movement can add ~$420K in avoidable costs in a single AI workload by leaving high-value compute idle.5
40x faster data movement
Transferring 1 petabyte of training data takes 222 hours at 10 Gbps vs. 6 hours at 400 Gbps, dramatically reducing time spent waiting for data.5
Why Lumen is positioned to win
Lumen brings together physical network scale, a digital platform and a connected ecosystem—turning network infrastructure into an on-demand, programmable service.
Physical network
Fiber footprint enables ≤5ms latency to approximately 95% of U.S. businesses, with 47M intercity fiber miles planned by 2028
Digital platform
Converts fiber into software-addressable services via APIs, automation and network-as-a-service (NaaS)
Connected ecosystem
Extends our network through integrated partners, cloud providers, data centers and marketplaces.
Physical network
Fiber footprint enables ≤5ms latency to approximately 95% of U.S. businesses, with 47M intercity fiber miles planned by 2028
Digital platform
Converts fiber into software-addressable services via APIs, automation and network-as-a-service (NaaS)
Connected ecosystem
Extends our network through integrated partners, cloud providers, data centers and marketplaces.
Commercial traction is accelerating
With nearly 2,000 NaaS customers and approximately $13B in Private Connectivity Fabric (PCF) sales to date.
Commercial traction is accelerating
With nearly 2,000 NaaS customers and approximately $13B in Private Connectivity Fabric (PCF) sales to date.
A winning financial model
The Lumen Connect platform delivers cloud-like economics—scalable growth with declining marginal cost, driven by fewer ports, less hardware and seamless provisioning. By 2028, Lumen expects its enterprise business to grow to:
Annual digital services revenue
North American enterprise revenue coming from strategic growth businesses
Cloud 2.0 is already choosing its leaders
In an era where first movers compound advantage, Lumen is transforming from a legacy telecom provider into a digital-first network services company—to become the backbone of the AI-powered enterprise.
See how Lumen is shaping the next era of enterprise networking and delivering on financial and strategic priorities.
1 IDC, Worldwide semiannual public cloud services tracker.
2 Gartner, Forecast analysis: GenAI spending in software (assumes 2023–2028 CAGR extends through 2030).
3SAP Capital IQ, Earnings calls.
4Baxtel and 4MC Partners, Analysis.
54MC Partners, Multi-source data prepared for Lumen analysis.
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