American Tower targets edge and 6G densification as data traffic surges
American Tower CEO Steve Vondran presented a positive outlook on the company's tower and data center businesses, emphasizing growth fueled by U.S. mobile data usage, 6G spectrum opportunities, and strong performance from its CoreSite subsidiary. The company sees edge computing and network densification as key drivers, with satellite technology being complementary rather than a threat to its core business model. American Tower is leveraging its CoreSite data centers for interconnection and its tower sites for evolving edge infrastructure.
Key Takeaways
- CoreSite subsidiary generates double-digit growth and mid-teens stabilized returns through its focus on interconnection-rich hubs rather than hyperscale capacity.
- U.S. mobile data usage increased 35% last year, pacing a requirement for carriers to double network capacity by the end of the decade.
- Deployment of 6G spectrum in the 6-8 GHz range is expected to drive more tower builds due to the higher frequency's lower propagation efficiency.
- Satellite technology, including investments in AST SpaceMobile, is viewed as a complementary coverage tool rather than a competitive threat to terrestrial towers.
- New business from the three major U.S. carriers now matches historical levels seen during the four-carrier era.
Why It Matters
The shift toward mid-band 5G and future 6G frequencies necessitates higher site density, a direct tailwind for tower operators even as traditional carrier counts consolidate. By integrating CoreSite's data center capabilities with its physical tower footprint, American Tower is building a distributed compute architecture designed to solve the low-latency and backhaul challenges of high-bandwidth video traffic. This strategy positions the company to capture value from both the physical transport and the localized processing of streaming data. Investors should watch for the FCC's upper C-band auction results in 2026 as a primary signal for the next wave of infrastructure equipment spending.
Additional Context
The push for new infrastructure coincides with a significant rebound in U.S. regulatory activity. Following the passage of the One Big Beautiful Bill Act in July 2025, the FCC regained its spectrum auction authority, which had been lapsed since 2023. Per Wiley Law (July 2025), this legislation mandates the auction of at least 800 megahertz of spectrum, including a specific directive for the 3.98–4.2 GHz upper C-band. The FCC has since scheduled Auction 113 to begin in June 2026, targeting at least 100 megahertz in this range to support 5G and 6G expansion (per Advanced Television, December 2025).
While American Tower maintains a strategic board seat at AST SpaceMobile, its financial relationship with the satellite firm has evolved. According to SEC filings reported by SatNews (December 2025), American Tower’s subsidiary liquidated approximately 2.28 million Class A shares in a block trade for $159 million just before the BlueBird 6 satellite launch. Despite this divestment, the company retains a significant economic interest through over 2 million redeemable units, reinforcing the CEO's view that satellite remains a secondary, complementary layer to terrestrial networks.
Industry usage metrics continue to support this infrastructure demand. According to CTIA’s 2025 Annual Survey (September 2025), U.S. mobile data traffic reached a record 132.5 trillion MB in 2024, representing a 32% year-over-year increase. This surge in volume, largely driven by streaming services and 5G adoption, has led to the activation of over 15,000 new cell towers in 2024 alone. These data points align with Vondran's assessment that baseline mobile demand remains recession-proof, irrespective of interest rate cycles.
Read full article at insidetowers.com
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