The rise of Cloud 2.0

Legacy networks built for yesterday’s cloud can’t keep up with AI’s demands. Enterprises must view connectivity as a strategic asset—moving beyond patchwork networks to dynamic, intelligent fabrics engineered for cloud-native, multi-cloud and AI-intensive applications.

Cloud 2.0 envisions a fundamental network architecture shift over the next 3-5 years, merging cloud and enterprise core networks to be faster, more secure, distributed and programmable.

AI is breaking the network

Centralized data centers, legacy WANs and public internet overlays can’t support the scale, speed and intelligence AI requires.

  • Massive datasets
  • Real-time processing
  • Distributed compute and storage
Illustration of a vertical server stack with five panels, each showing red indicator lights glowing and blinking, symbolizing system stress or failure under heavy data load.

These challenges are pushing the limits of legacy networks and driving a massive need for new data centers located in resource-rich regions nationwide.

Data centers market all segments 2024

Data centers market all segments 2030

A map of the United States showing the data center market in 2020 and a second map showing projected growth in data center locations by 2030, with orange dots representing new centers.

10x

projected growth in U.S. data center capacity by 20301

~1 billion

sq. ft. data center capacity by 20301

Unlocking new efficiencies

By moving data centers away from enterprise headquarters to areas with robust energy and fiber connectivity, operators can take advantage of higher bandwidth and more reliable infrastructure. These new clusters will drive demand for fiber, wavelength and IP services.

A map of the United States with colored dots representing data points distributed across the country. The dots are grouped by color: tan in the Pacific Northwest, green along the West Coast and Midwest, blue in the central states, purple in the South, pink in the Northeast and Southeast and yellow in Florida.

Eight emerging AI regions along resource-rich corridors with transport and power

more expensive to transfer 1 petabyte of data for AI training on 10G vs. 400G network1

Speed meets savings

Enterprise network bandwidth is a key driver for efficient GPU usage in AI training. As data centers gain access to more accessible, affordable bandwidth, the cost and time needed to transfer massive AI datasets will drop exponentially.

Enterprise time before training can start1

Purpose-built for performance

Cloud 2.0 requires networks engineered for exabyte-class moves, ultra-low latency and massive parallelism—unlocking new possibilities for AI and business innovation.

  • Cloud-to-cloud and cloud-to-data center fabrics
  • DCO-agnostic data center interconnects
  • Regional transport hubs replacing legacy cloud-native functions
  • API-first platforms and virtual gateways
Illustration of a network featuring a wireless router with signal icon at the top connected by a dotted orange line to two vertical stacks of database servers linked at the bottom by a line with geometric nodes, symbolizing high-speed, scalable and interconnected cloud infrastructure.

Cloud 1.0

Cloud 2.0

Cloud 1.0 cloud connect diagram showing outdated 20th-century architecture with centralized cloud linked to carrier-agnostic facilities and regional data centers.

Cloud 1.0 cloud connect (20th century)

Cloud 1.0 architecture will be insufficient for the needs of Cloud 2.0 because it:

  • Lacks high-capacity optical support
  • Creates bottlenecks at higher densities of regional data centers
  • Favors select data center outsourcers
  • Causes sub-optical connectivity
  • Supports only highly regional cloud architectures

Data center interconnects—the new network core

Today's networks are all about agile, high-speed connections between data centers that keep AI workloads flowing. Modern networks will comprise three distinct layers, each optimized for specific performance, security and reliability requirements:

Access and edge layer
Cloud 2.0 front-end layer
Industrial back-end layer
Access & edge layer
Connects users and branch offices to cloud-edge services like security and SaaS

  • Powered by broadband and dedicated internet access (DIA)

  • Designed for high-volume transactions

Cloud 2.0 front-end layer
Links legacy Cloud 1.0 apps, storage and AI engines

  • Uses Ethernet and optical waves

  • Optimized for performance

Dense interconnects between data centers
Industrial back-end layer
Private, provider-specific networks for high-demand workloads

  • Built on dark fiber

  • Tailored for production and scale

Building the backbone of tomorrow’s cloud

The next era of cloud demands networks built for speed, intelligence and scale. Lumen is helping to drive this shift—empowering organizations with infrastructure that’s purpose-built for the future.

Read our latest report to discover a bold new vision to meet the unprecedented demands of AI with a unified network solution for multi-cloud environments.

Abstract illustration of modern data center servers on the left with vibrant orange and white clouds, and a sweeping teal and orange digital wave flowing to the right. Represents high-speed connectivity, scalable cloud infrastructure and next-generation data center solutions for Cloud 2.0.

1Based on multi-source data compiled by 4MC Partners and analyzed by Lumen.

 

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