Uniti Wholesale Accelerates 2026 Expansion Plan
Uniti Wholesale today announced "accelerated progress" on its 2026 expansion plan, including new data center on-ramps, key route upgrades, and the launch of FastWaves-a pre-deployed optical capacity program designed to cut delivery intervals for 100G and 400G wavelength services to less than three weeks on select routes. The company said, "Uniti Wholesale is making a significant capital investment in 2026 to expand connectivity between the most important data centers in the U.S., with approximately 20 new data center on-ramps and six major route upgrades and new routes. This aligns with the company's commitment to delivering best-in-class Wavelength services via its nationwide Intelligent Converged Network (ICON) network, designed for 10G, 100G, 400G and 800G speeds to meet the multiple-terabit demands of AI. Six initial data center projects are underway with many more to follow, targeted for completion this year...Route initiatives include upgrades or new builds on approximately six corridors, with three already in motion: Minneapolis-Chicago, Denver-Dallas, and Dallas Metro. These efforts complement Uniti Wholesale's broader expansion to improve access to data center locations, international cable landing stations, and regional cloud hubs, with ongoing enhancements toward supporting 800G wave capability. To meet surging demand for high-capacity transport, Uniti Wholesale is launching FastWaves to shrink delivery intervals. The company is pre-deploying muxponders to provide excess line-system capacity across its ICON network. This enables delivery of 100G and 400G waves in less than three weeks on select routes. Phase 1 will activate 40 high-demand routes and is targeted for completion by March 1. Phase 2 will add 15 more routes early in the second quarter, with further expansions coming online as capacity allows. Customers gain complete visibility of route availability through the iconnect customer portal via the Route Creator tool, where they can quote and order directly."
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- Network Expansion Investment: Uniti Wholesale plans a significant capital investment in 2026, adding approximately 20 new data center on-ramps and six major route upgrades, aimed at enhancing its nationwide Intelligent Converged Network (ICON) to meet the growing multi-terabit demands of the AI era.
- FastWaves™ Program Launch: The company is launching the FastWaves™ initiative to reduce delivery intervals for 100G and 400G wavelength services to less than three weeks, with Phase 1 set to activate 40 high-demand routes by March 1, further enhancing customer service experience.
- Customer Visualization Tool: Through the iconnect customer portal, clients can utilize the Route Creator tool to view available routes and place quotes and orders directly, increasing transparency in the delivery process while simplifying partner scaling across the U.S.
- Enhanced Service Commitments: The FastWaves program features competitive pricing and SLA-backed commitments, ensuring compensation if installations are not completed within three weeks, showcasing Uniti Wholesale's robust service assurance capabilities in the high-capacity transport market.

Phase 1 Activation: UNITI Group plans to activate 40 high-demand routes by March 1 as part of its Phase 1 strategy.
Phase 2 Expansion: In Q2, the company aims to add 15 more routes, further expanding its network.

- Investment Plans: UNITI is planning to make capital investments in 2026 to expand data center connectivity in the U.S.
- Infrastructure Enhancements: The investment will include the addition of 20 on-ramps and six major route upgrades.
- Complete Liquidation: Arena Capital Advisors disclosed on February 3, 2026, that it sold its entire position of 611,495 shares in Diebold Nixdorf for an estimated value of $34.9 million, indicating a shift in confidence regarding the stock.
- Portfolio Adjustment: Previously, Diebold Nixdorf represented 15% of Arena Capital's securities portfolio, and this liquidation aligns with a broader 31% reduction in the value of their disclosed holdings, reflecting a strategic repositioning.
- Market Performance: As of February 3, 2026, Diebold Nixdorf shares traded at $70.99, marking a 68.8% increase over the past year, significantly outperforming the S&P 500 by 53.4 percentage points, showcasing its strong market position.
- Investment Strategy: Arena Capital likely acquired Diebold Nixdorf at lower prices and opted to sell now to raise cash for investments in assets with better return prospects, indicating a strategic shift in their value investment approach.
- Strong Small-Cap Performance: Year-to-date in 2026, the iShares Core S&P Small-Cap ETF (IJR) has surged 10.9%, significantly outperforming the SPDR S&P 500 ETF Trust (SPY) which only rose 1.4%, indicating a potential shift in investor sentiment towards small-cap stocks after years of underperformance.
- Leading Communication Services: Uniti Group (UNIT) tops the list with a 16.09% price percentage above its 200-day simple moving average, showcasing its robust market performance and likely attracting increased investor interest in small-cap communication services.
- Notable Performers: Gray Media (GTN.A) and Sinclair (SBGI) follow closely with increases of 15.80% and 4.85%, respectively, highlighting the diversity and growth potential within the communication services sector, which may prompt investors to reassess the value of this industry.
- Market Trend Insights: The strong performance of small-cap stocks may lead investors to reconsider their portfolios, particularly in the communication services sector, which is expected to drive inflows into related ETFs like XLC and VOX, further enhancing market vitality.
- Upsized Offering: Uniti Group increased its senior notes offering from $500 million to $1 billion, reflecting strong market demand for its financing needs, which is expected to enhance the company's liquidity and financial flexibility.
- Interest Rate Setting: The notes carry an interest rate of 8.625% and are priced at 100.25%, indicating high investor demand for this debt instrument, which may impact the company's cost of capital.
- Clear Use of Proceeds: The net proceeds will be used to repay Uniti Services' senior secured first lien term loan due 2031, cover related fees, and allocate remaining funds for general corporate purposes, ensuring the robustness of the company's financial structure.
- Expected Closing Date: The offering is anticipated to close on February 4, 2026, marking an active positioning of the company in the capital markets, which supports its future strategic development.









