AT&T has entered into a multiyear agreement valued at over $3 billion with Corning to supply fiber optic cable and related materials. The deal, announced on Tuesday, is part of AT&T’s broader strategy to expand its fiber network infrastructure in response to increasing demand for data services.

The growth in data consumption is driven by several factors, including the proliferation of artificial intelligence applications, cloud computing, video streaming, and the rising number of connected devices. AT&T noted that the average household using its fiber service now consumes more than 1 terabyte of data per month, a fivefold increase since 2016, with expectations for continued growth.

Fiber-optic networks are increasingly viewed as a critical component for telecommunications providers as traditional wireless markets mature and internet traffic intensifies. The faster speeds, higher capacity, and increased reliability of fiber are essential to support services such as video conferencing, entertainment streaming, and data-intensive AI workloads.

By securing a substantial supply of fiber from Corning, a leading manufacturer in the sector, AT&T aims to bolster its infrastructure to meet surging customer needs and maintain competitiveness in the evolving telecommunications landscape. The investment underscores the industry's focus on fiber as a foundation for future network growth amid rising data demands.