AT&T has signed a multiyear agreement worth more than $3 billion with Corning for fiber-optic cable and related products, supporting the expansion of its U.S. network. The deal comes as rapidly rising data consumption and growing investment in AI and cloud infrastructure increase demand for high-capacity telecommunications networks.

AT&T Accelerates Its Fiber Network Expansion

Under the agreement, Corning will supply AT&T with fiber and cable products needed to expand the network and connect more homes and businesses to high-speed broadband. AT&T has set a target of reaching 60 million fiber-connected locations by the end of 2030.

The expansion comes as data usage continues to rise sharply. The average household on AT&T’s fiber network now consumes more than 1 terabyte of data each month, five times the level recorded in 2016. AT&T expects monthly consumption to continue increasing, potentially reaching 2 to 2.5 terabytes by 2030 as streaming, online gaming, video calls, cloud services and AI tools become more deeply integrated into everyday activity.

AI Is Increasing the Strategic Importance of Fiber

The growth in demand extends beyond households. AI applications and cloud services require the rapid and reliable movement of large volumes of data, increasing the importance of optical infrastructure for both telecommunications networks and data-center connectivity.

For AT&T, fiber investment forms part of a broader infrastructure strategy that combines wired and wireless networks. Fiber can support a wide range of applications, from streaming and video conferencing to AI tools and enterprise services. Satellite connectivity can complement existing networks in remote areas where fiber and wireless infrastructure are less readily available.

The growing data requirements associated with AI also create a longer-term infrastructure opportunity. As data centers expand and businesses deploy more AI workloads, telecommunications providers are likely to require additional fiber capacity to connect facilities, networks and end users.

Corning Gains From a Broader Optical Infrastructure Investment Cycle

For Corning, the AT&T agreement adds another major contract to a growing pipeline of fiber infrastructure demand. Earlier in September, the company signed a multiyear, multibillion-dollar agreement with Verizon to supply more than 80 million miles of high-density optical fiber and connectivity solutions between 2027 and 2032.

The expansion of fiber demand connects two major trends: broadband deployment for consumers and accelerating investment in AI infrastructure. For AT&T, the agreement provides greater visibility into the supply of critical components required for its network expansion. For Corning, it adds a significant customer commitment at a time when telecommunications providers, cloud companies and technology firms are increasing spending on optical capacity.

Investors will be watching AT&T’s progress toward its 60 million-location fiber target, the pace of network deployment and continued growth in data consumption. For Corning, demand from telecommunications companies and data-center operators will remain an important indicator of the long-term growth potential of its optical infrastructure business.