Amazon signs multibillion-dollar Corning deal to build the next generation of fiber optic cables for data centers | Daily Reports Online
- Amazon signs agreement with Corning to procure fiber optic cables and networking components
- The move is expected to create hundreds of construction jobs in addition to the 1000 it creates at Corning’s facilities in North Carolina
- Move comes as Amazon announces more than $20 billion investment into the state to create 26,000 jobs
Amazon has announced a multi-year, multi-billion-dollar agreement with Corning to supply its data center needs as it capitalizes on an AI-driven boom in demand.
The move, which creates manufacturing and construction jobs, also expands Corning’s Fiber Optic Technician Training Program at Catawba Valley Community College, signaling an increased demand for technical workers in the fiber-optic industry.
Amazon has already committed to $10 billion in cloud infrastructure investments in North Carolina, investing over $20 billion in the state in projects it says have directly contributed to the creation of 26,000 jobs.
Amazon’s glass obsession: bandwidth is key
The agreement comes weeks after AWS (Amazon Web Services) showcased Random Network Graph architecture, a fiber-optic network design that arranges cables in a semi-random configuration to boost bandwidth and reliability between servers.
The design considerably increases demand for fiber-optic cable and connectivity while solving one of AI’s biggest challenges as models and data centers grow larger: reliable bandwidth.
Corning makes for an ideal partner for most AI data center companies looking to build out infrastructure: it is one of the world’s largest fiber-optic manufacturers, is a US-based company, and offers cutting-edge fiber-optic technology all in one package. The 175-year-old glass company is up 94.72% Year-to-date (YTD) as investors continue to look for indirect beneficiaries of the AI trade amid unabated spending.
Amazon’s move is not an isolated one, even as it marks a multi-billion-dollar investment in fiber optics for Corning. Nvidia has already been here first, backing the construction of 3 new optical equipment facilities and investing as much as $3.2 billion in the company’s shares to finance what it says is a “10x increase” in its US-based optical connectivity manufacturing capacity.
“Amazon’s investments in North Carolina have created more than 26,000 jobs across the state. This multibillion-dollar agreement with Corning continues that commitment, channeling investment into American manufacturing and creating 1,000 new jobs at their facilities near our data centers,” said Matt Garman, CEO of AWS.
“We’re also partnering to train North Carolinians for highly skilled roles in fiber optics and fusion splicing. These long-term investments create long-term careers and real opportunity in the communities where we operate.”
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