Zayo Group Holdings announced it has signed a deal for the largest amount of capacity sold on any route in the company's history.
The deal with the unnamed customer will provide approximately 5 terabits of capacity that can be used to connect key data centers. While Zayo isn't saying who the customer is, large hyperscale cloud providers, including Amazon Web Services, Microsoft Azure and Google Cloud Project, and webscale companies such as Facebook, seem to be likely candidates.
“Our customers are no longer talking gigabits—they’re talking terabits on multiple diverse routes,” said Zayo's Julia Robin, senior vice president of transport, in a statement. “Zayo’s owned infrastructure, scalable capacity on unique routes and ability to turn up services quickly positions us to be the provider of choice for high-capacity infrastructure.”
According to a report by IDC, data created, captured and replicated worldwide will be 175 zettabytes by 2025 and 30% of it will be in real time. A large chunk of that amount will be driven by webscale, content and cloud providers that require diverse, high capacity connections between their data centers. In order to provision high bandwidth amounts, service providers and webscale companies are turning to dedicated wavelength solutions.
Zayo’s wavelength network provides dedicated bandwidth to major data centers, carrier hotels, cable landing stations and enterprise locations across its long-haul and metro networks.
Boulder, Colo.-based Zayo provides fiber connections for the communications industry across the U.S., Canada and Europe. Zayo’s 130,000-mile network in North America and Europe includes metro connectivity to thousands of buildings and data centers
Zayo’s communications infrastructure offerings include dark fiber, private data networks, wavelengths, Ethernet, dedicated internet access and data center colocation services. Zayo also owns and operates a Tier 1 IP backbone and 51 carrier-neutral data centers.
After speculation earlier this year that Zayo was going to be bought by CenturyLink, Alphabet or investment firms, Zayo announced in May that it agreed to be acquired by affiliates of Digital Colony Partners and the EQT Infrastructure IV fund. That deal is slated to close in the first half of next year.