From Broadband to Brainpower: Why BEAD’s Next Phase Should Fuel America’s AI Infrastructure

By: Kevin Driscoll

The BEAD program was designed to close the digital divide and bring high-speed broadband to every American community. As networks are finally being built, a new divide is emerging: between those who simply deliver connectivity and those who can power the next generation of intelligence: Artificial Intelligence.

Billions in BEAD funding are already committed, but many states will soon face a familiar question: what happens to the unused or redirected funds? Instead of letting those dollars fade into administrative gray zones, the U.S. has an opportunity to take a bold next step: use remaining BEAD resources to extend fiber infrastructure not just for access, but for intelligence.

Beyond Access: Building the Backbone for an AI-Ready America

The next phase of broadband is about more than faster streaming or lower bills. It is about creating low-latency, high-capacity networks that link communities to the compute power shaping our economy.

That starts with enhancing IP transit to AI facilities. Today, many rural and regional service providers operate without direct IP transit, relying on expensive, congested upstream networks. By investing in new fiber that connects directly to AI-enabled data centers and peering points, these providers, and their customers, gain a seat at the AI table.

The result:

Lower latency for AI applications and tools
Smarter, more adaptive AI models trained on broader, more diverse interactions
Reduced operating costs for rural ISPs through more efficient routing and traffic management

This is an upgrade that strengthens both Main Street and the data center, ensuring rural America doesn’t just consume AI, but helps make it smarter.

Peering with AI Operators: A Smarter Way to Connect

Peering has long been a critical part of efficient network design. It is time to extend that model to AI.

Imagine a fiber network that stretches from rural service areas directly to AI peering locations or even major AI campuses. This approach would offload AI-heavy traffic from public IP transit networks, improving performance while lowering costs.

For BEAD award winners, this is not only a technical enhancement but also a potential new revenue stream. Direct peering could create opportunities for mutual exchange agreements or even micro-economies that reward high-performance connections.

Redirecting a portion of excess BEAD funds toward peering infrastructure would connect more people, more efficiently, and with higher long-term value.

Introducing “AI Scale-Across”: The Next Frontier of Fiber Infrastructure

AI innovation is increasingly distributed. The next frontier, known as AI Scale-Across, depends on linking multiple data centers across long distances to function as one massive “AI factory.”

This requires a new kind of network: high-count, high-capacity fiber capable of supporting coherent optical signaling directly at the rack. It enables geographically separate AI facilities to operate as one, merging compute and data in real time.

Many of the routes envisioned in BEAD’s rural builds already trace the ideal paths for AI Scale-Across. With modest reallocation and smart coordination, these networks could serve a dual purpose: connecting people while powering the infrastructure behind America’s AI future.

The Call to Action: Make BEAD a Bridge to the Future

If BEAD was phase one – connecting every community – then phase two must be building the infrastructure for an AI-ready America. Redirecting unused or surplus BEAD funds toward this purpose would:

Strengthen U.S. competitiveness in AI
Lower operational costs for rural ISPs
Enhance citizen access to next-generation tools and learning
Turn BEAD networks into revenue-generating digital highways that power both broadband and AI

The U.S. has already invested in connecting the country. Now it must ensure those connections are built for what comes next: the intelligence economy that is rapidly reshaping every sector.

We Build Connections. Now Let’s Build Intelligence.

At Netceed, we believe in helping our partners think beyond today’s challenges. As BEAD award winners move from construction to optimization, the opportunity is clear: build once, build smart, and build for the future.

The next era of broadband is not just about capacity. It is about creating the infrastructure for a more intelligent, more connected world.