Amazon taps Corning for fiber in US AI data center build

Amazon has signed a multibillion-dollar, long-term supply agreement with Corning to provide optical fiber, cable and connectivity for its expanding U.S. data center network. The deal, announced Monday, pushed Corning shares up about 8% and is expected to create roughly 1,000 jobs at Corning’s North Carolina manufacturing sites.

Under the contract, Corning will supply networking infrastructure that supports Amazon’s cloud and artificial intelligence operations across the United States. The components include optical fiber, cables and connectivity solutions used to link servers, storage and AI processors inside hyperscale data centers.

The agreement calls for an expansion of Corning’s manufacturing footprint in North Carolina and an increase in training for fiber-optic technicians at its plants. Amazon and Corning estimate the investment will create approximately 1,000 jobs in the state.

Corning’s shares have more than doubled so far this year and stand nearly six times higher than at the end of 2023. The stock fell more than 10% during a broad selloff on Friday amid concerns that higher interest rates could slow debt-funded data center expansion, but the Amazon announcement sent shares sharply higher on Monday.

Optical communications is Corning’s largest and fastest-growing business segment. Fiber-optic cables transmit large volumes of data at high speed and connect the racks and processors that handle intensive AI workloads. Corning, which invented optical fiber for long-distance communications in 1970, supplies millions of miles of fiber-optic cable to cloud and AI customers worldwide.

The Amazon agreement follows other recent commitments linking Corning to the AI supply chain. In May, Nvidia agreed to invest up to $3.2 billion in Corning, including plans for three advanced manufacturing facilities. Earlier this year, Meta pledged up to $6 billion as the anchor customer for an expansion of Corning’s optical cable plant in Hickory, North Carolina, a project expected to generate about 1,000 jobs.

In a joint statement, Amazon and Corning wrote, “Amazon’s data centers power the services millions of people and businesses rely on every day. Corning’s fiber optics are a critical piece of that infrastructure, and together, these investments help fuel the US economic engine.” Corning chief executive Wendell Weeks called the pact “a significant milestone for Corning and for American manufacturing,” and added the partnership will help “lead the way toward building a resilient US manufacturing base.” Amazon Web Services chief executive Matt Garman noted the company’s broader investments in North Carolina have created more than 26,000 jobs and referenced a separate $10 billion commitment last year toward new data center developments in the state.