Zayo to acquire Crown Castle’s fiber solutions business in $4.25bn deal

Zayo, a leading provider of communications infrastructure, has announced a definitive agreement to acquire Crown Castle’s Fiber Solutions business in a deal valued at approximately $4.25 billion. This acquisition marks a significant expansion of Zayo’s metro fiber assets, reinforcing its position as a key player in the rapidly evolving digital landscape.

Backed by DigitalBridge and EQT, Zayo’s move aligns with the increasing demand for high-capacity fiber networks, which serve as the backbone of artificial intelligence (AI), cloud computing, and next-generation connectivity. The transaction is expected to add 90,000 route miles of fiber to Zayo’s network, extending its total reach to more than 70,000 on-net locations and significantly enhancing its ability to serve enterprises, data centers, and cloud providers across the United States.

Why Is Fiber Infrastructure Crucial for AI Growth and Digital Transformation?

The acquisition of Crown Castle’s fiber solutions business comes at a pivotal moment as the U.S. accelerates its transition toward AI-driven technologies and digital reindustrialization. With AI applications requiring high-speed, low-latency connections, fiber infrastructure has become an essential component of economic and technological competitiveness.

For years, Zayo has been investing heavily in fiber broadband solutions, having committed over $20 billion in infrastructure projects across the country. This latest expansion strengthens its capacity to support AI-driven applications, cloud networking, and hyperscale data centers—sectors experiencing exponential growth due to increased enterprise reliance on machine learning, automation, and big data analytics.

The integration of Crown Castle’s metro fiber assets will also help Zayo close connectivity gaps between major urban centers and emerging AI corridors, ensuring seamless data transmission for businesses adopting next-generation technologies.

How Will This Deal Impact the Competitive Fiber Market?

Zayo’s acquisition of Crown Castle’s fiber solutions business positions it as a formidable competitor in the metro fiber market, particularly against incumbents such as AT&T, Verizon, and Lumen Technologies. The deal not only enhances Zayo’s geographical footprint but also strengthens its ability to offer enterprise-grade fiber solutions in high-density metropolitan areas.

In an industry increasingly driven by cloud migration, AI workloads, and 5G expansion, fiber networks play a critical role in supporting enterprise growth and innovation. With Crown Castle’s metro fiber assets, Zayo will be better equipped to provide high-bandwidth, scalable connectivity solutions, further consolidating its influence in the telecommunications infrastructure sector.

Marc Ganzi, CEO of DigitalBridge, underscored the importance of fiber as a foundational element of AI expansion. He noted that by integrating Crown Castle’s fiber solutions business, Zayo will be well-positioned to support next-generation connectivity needs and accelerate technological progress in the United States.

What Are the Financial and Strategic Implications of the Deal?

The transaction forms part of a broader restructuring, with Crown Castle also divesting its Small Cells business in a separate transaction led by EQT’s Active Core Infrastructure fund. Combined, the two deals represent a total value of $8.5 billion.

As part of the restructuring, Zayo and the Small Cells business will enter into a long-term fiber supply agreement, ensuring continued interconnectivity between the newly separated entities.

This move underscores the growing focus on fiber-optic connectivity as a distinct and highly valuable asset within the telecommunications sector. With increasing demand for AI-driven applications, cloud services, and edge computing, fiber networks have emerged as one of the most strategic infrastructure investments in the digital economy.

How Does This Acquisition Position Zayo for Future Growth?

The transaction cements Zayo’s long-term strategy of expanding fiber broadband solutions to meet the evolving needs of enterprises and hyperscalers—companies that require massive computing resources for AI, machine learning, and data analytics.

Steve M. Smith, CEO of Zayo, emphasized that the deal enhances the company’s ability to deliver high-capacity fiber solutions for enterprises operating in an increasingly data-intensive environment. He reiterated Zayo’s commitment to building reliable, scalable fiber networks that will power the future of AI, cloud computing, and advanced digital services.

With AI adoption accelerating across industries, fiber infrastructure has become a critical enabler of technological innovation. This acquisition ensures that Zayo remains at the forefront of fiber connectivity solutions, positioning itself as a key facilitator of digital transformation in the United States.

As the deal progresses toward regulatory approval, market analysts anticipate that the acquisition will enhance Zayo’s competitive standing, providing it with a stronger platform to capitalize on the growing demand for high-speed, low-latency connectivity.