- Crown Castle sells fibre business to Zayo for $4.25 billion.
- EQT acquires Crown Castle’s Small Cells business for $4.25 billion.
What happened: Crown castle strikes $8.5B deal with Zayo and EQT
Crown Castle, a leading infrastructure provider in the U.S., has finalised two major deals totalling $8.5 billion. The company has agreed to sell its fibre business to Zayo, a communications infrastructure firm backed by DigitalBridge, for $4.25 billion. Simultaneously, EQT’s Active Core Infrastructure fund will acquire Crown Castle’s Small Cells business for an equivalent amount.
The acquisition by Zayo will significantly expand its fibre network, adding nearly 100,000 fibre miles and extending its reach to over 70,000 locations. This move aligns with Zayo’s strategy to bolster the U.S.’s critical network infrastructure, catering to the growing demands of hyperscalers, data centres, enterprises, and carriers. Steve M. Smith, Zayo’s CEO, emphasised the strategic importance of the deal, stating that it enhances the company’s ability to deliver reliable fibre solutions in an increasingly data-driven world.
Meanwhile, EQT’s acquisition of Crown Castle’s Small Cells business underscores the growing importance of fibre infrastructure in supporting AI and technological advancements. Jan Vesely, Partner at EQT, highlighted the role of high-performance digital infrastructure in maintaining the U.S.’s competitive edge in AI.
As part of the transaction, Zayo and the Small Cells business will enter into a long-term commercial agreement to ensure continued fibre support. The deal is expected to close in the first half of 2026, subject to regulatory approvals.
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Why it’s important
The $8.5 billion deal between Crown Castle, Zayo, and EQT marks a significant shift in the U.S. telecommunications and digital infrastructure landscape. Fibre networks are the backbone of modern connectivity, enabling high-speed data transmission essential for AI, cloud computing, and 5G technologies. By acquiring Crown Castle’s fibre business, Zayo is positioning itself as a key player in meeting the infrastructure demands of hyperscalers and enterprises, which are increasingly reliant on robust digital networks.
Similarly, EQT’s acquisition of Crown Castle’s Small Cells business highlights the critical role of small cell technology in enhancing wireless connectivity, particularly in urban areas. Small cells are essential for supporting the densification of 5G networks, which require a higher density of antennas to deliver faster speeds and lower latency.
This deal also reflects the broader trend of consolidation and investment in digital infrastructure, driven by the rapid growth of AI and data-intensive applications. Companies and nations that prioritise high-performance digital infrastructure are better positioned to lead in the AI-driven economy.
