On Tuesday, Uniti Group Inc ( UNIT ). announced a significant 20-year contract award for a long-haul fiber and conduit project with an existing strategic hyperscale customer.

The project will involve the construction of over 130 route miles of multi-conduit systems and high-strand count fiber cables connecting Montgomery to Cuba, Alabama.

This new east-west infrastructure will link key data center locations and provide a diverse path to other north-south long-haul routes, with the endpoint located just east of Meridian, Mississippi.

Greg Ortyl, Uniti’s President of Wholesale & Strategic Accounts, highlighted the growing demand from hyperscale customers for multiple fiber paths to ensure network redundancy.

“We continue to see our hyperscale customers seeking three, four or, sometimes more, fiber paths into strategic data center locations to provide the network redundancy they demand, and we are excited to participate in future solutions that are also strategic for Uniti,” Ortyl adds.

The company plans to deliver these fiber routes by 2026.

Also Read: Apple’s AI Advances Can’t Offset Chinese Market Slowdown, Says Analyst

In addition to this contract, Uniti recently priced a $589 million offering of secured fiber network revenue term notes.

The notes, which include Class A-2, B, and C tranches, will be secured by fiber network assets and customer contracts in Florida and the Gulf Coast regions of Louisiana, Mississippi, and Alabama.

The weighted average yield of the notes is approximately 6.5%, with an anticipated repayment date in April 2030. This financing further supports Uniti’s expansion plans in the fiber infrastructure space.

Price Action: UNIT shares are trading higher by 0.92% to $5.925 at last check Tuesday.

Also Read:

WWE, Squid Game Fuel Netflix Ad-Supported Growth: Analyst Sets $1,000 Price Forecast

Image via Shutterstock.