Shentel sees incremental revenue potential with the rural data center movement

Fiber network position

When it comes to serving data centers, Shentel has a fiber network that is positioned to provide the right mix of lit and dark fiber facilities.

With 19,000-plus route miles of fiber, Shentel’s network is connected to key data center hubs and offers unique routes. The network stretches from Chicago to Washington, D.C., and Ashburn, Virginia, as well as into key markets like Columbus, Ohio, and Pittsburgh.

McKay notes that its fiber reach and diverse routes could be attractive to data center providers.

“As these data centers move out further from the metropolitan areas, seeking areas with land and power, we believe we can take advantage of those unique fiber routes that we have and gain some of that business,” he said.

And while it sees the wholesale revenue potential for its fiber network to serve data centers, Jim Volk, CFO of Shentel, cautioned that it is too early to forecast any specific numbers.

“It would be a little premature to get into revenue expectations,” he said. “But I can tell you about 20 data centers are being built or built near our fiber in the 8 states we operate in.”

He added that while it’s “not clear to me whether all of them are actually going to get built, but if they do get built, we think we're in a prime position to win some business.”

Carrier, enterprise drive revenue growth

Driven by strong demand from wireless carriers, wholesale customers, and school systems, Shentel’s Commercial Fiber revenue grew $900,000 or 4.7% year-over-year.

During the quarter, Shentel’s business service delivery team installed 167,000 in new monthly revenue, and the acquired Verizon backlog that drove elevated installation activity in 2025 is now mostly complete.

Shentel also kept churn in the commercial segment in check.

Average monthly compression and disconnect churn remained very low at 0.4% in the first quarter, reflecting support from both its network operations center and sales team.

“Collectively, these results demonstrate the excellent momentum we continue to see in our fiber businesses,” McKay said.

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