Stock Markets July 8, 2026 11:20 AM

Blue Owl-backed Kirkwood to Build Fiber and Conduit Network for Hyperscale Data Centers

New U.S. digital infrastructure platform combines South Reach assets and aims to expand with data center partners

By Leila Farooq
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Funds managed by Blue Owl Capital on Wednesday established Kirkwood Infrastructure Group, a fiber and communications infrastructure company focused on conduit and high-count fiber to serve hyperscale customers, data center operators and carriers. The new platform has absorbed Florida-based South Reach Networks, bringing nearly 400 miles of fiber and access to roughly 40 near-net and on-net data centers and key subsea cable landing stations, and is constructing more than 200 miles of conduit and fiber across Louisiana and Mississippi.

Blue Owl-backed Kirkwood to Build Fiber and Conduit Network for Hyperscale Data Centers
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Key Points

  • Kirkwood will develop, own and operate conduit and high-count fiber to serve hyperscale customers, data center operators and communications carriers - impacts data center, telecom and infrastructure sectors.
  • Integration of South Reach Networks adds nearly 400 miles of fiber and access to about 40 near-net and on-net data centers and key subsea cable landing stations - expands Kirkwood's network footprint.
  • Construction of more than 200 miles of conduit and fiber in Louisiana and Mississippi will connect Shreveport and Vicksburg to support new hyperscale data center developments - affects regional infrastructure and data center expansion.

Overview

Funds managed by Blue Owl Capital on Wednesday launched Kirkwood Infrastructure Group, a new company focused on fiber and communications infrastructure across the United States. The move comes as growing investment in artificial intelligence and hyperscale data centers is driving demand for high-capacity digital networks and the physical connective tissue between data hubs, carriers and subsea cable landing points.


What Kirkwood will do

Kirkwood is structured to develop, own and operate communications infrastructure including conduit and high-count fiber-optic cable tailored to hyperscale customers, data center operators and communications carriers. The firm has incorporated the operations of Florida-based South Reach Networks, which adds nearly 400 miles of fiber network to its footprint as well as access to about 40 near-net and on-net data centers and key subsea cable landing stations.

The company is also building in the Gulf Coast region, putting in more than 200 miles of conduit and fiber across Louisiana and Mississippi. Those new links will connect Shreveport and Vicksburg and are intended to support emerging hyperscale data center developments in that area.


Management and growth plans

Kirkwood will be led by Chief Executive Scott Bergs and a management team that Blue Owl says has experience developing more than 600 miles of network infrastructure over the past five years. Blue Owl has indicated the company plans to expand into additional U.S. markets alongside data center development partners, and that Kirkwood will operate independently from Blue Owl's investment in Gigabit Fiber LLC.


Market context

The launch illustrates investor interest in the physical infrastructure that supports AI and cloud computing, as developers and capital managers race to establish the fiber, conduit and connectivity that link hyperscale data centers, telecom carriers and subsea cable landing stations.

Risks

  • Integration and operational consolidation risk from adding South Reach Networks' assets - could affect network deployment timelines and operations in the telecom and data center sectors.
  • Execution risk tied to building over 200 miles of conduit and fiber across Louisiana and Mississippi to support hyperscale developments - regional infrastructure and data center projects may face delays or local challenges.
  • Expansion into additional U.S. markets depends on partnerships with data center development partners and on operating independently from existing investments like Gigabit Fiber LLC - strategic and market risks remain for infrastructure and telecom markets.

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