- Amazon signs agreement with Corning to purchase fiber optic cables and network components
- The move is expected to create hundreds of construction jobs in addition to the 1,000 it creates at Corning’s North Carolina facilities
- The move comes as Amazon announces more than $20 billion in investments in the state to create 26,000 jobs
Amazon has announced a multi-year, multibillion-dollar deal 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 increased demand for technical workers in the fiber optic industry.
Amazon has already committed $10 billion in cloud infrastructure investments in North Carolina and is 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 deal comes weeks after AWS (Amazon Web Services) showed off the Random Network Graph architecture, a fiber-optic network design that arranges cables in a semi-random configuration to increase bandwidth and reliability between servers.
The design significantly increases the demand for fiber optic cables and connectivity, while solving one of AI’s biggest challenges as models and data centers grow larger: reliable bandwidth.
Corning is an ideal partner for most AI data center companies looking to expand infrastructure: it is one of the world’s largest fiber optic manufacturers, is a US-based company and offers cutting-edge fiber optic technology 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 AI trade amid unabated spending.
Amazon’s move is not isolated, although it marks a multibillion-dollar investment in fiber optics for Corning. Nvidia has already been here first, supporting the construction of 3 new optical equipment facilities and investing as much as $3.2 billion in the company’s stock to fund what it says is a “10x increase” in its US-based optical connector 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 are 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 opportunities in the communities where we operate.”
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