Fiber operator Zayo Group, which has been expanding its network through acquisitions, is adding infrastructure the old-fashioned way: with capital investment.

The Colorado-based operator said on Tuesday its beefing up its Minnesota network to 1,700 miles throughout the Twin Cities and surrounding markets. That way, carriers, enterprises, schools, government agencies and other entities can access high-bandwidth services, Zayo said.

Zayo wont disclose how much its spending on the project, nor could it say how many jobs will be created. But, said Zayo Bandwidth CFO Chris Morley, construction crews alone will account for a significant number of jobs.”

The fiber-to-the-tower (FTT) buildout already has begun and Zayo will start activating sites within two weeks, Morley said. The FTT construction should be done by late in 2011s third quarter.

By that time, Zayo will have started building broadband stimulus-funded networks in Minnesota. Zayo this past July landed $13.4 million to install 300 miles of fiber infrastructure in the North Star State. The current expansion, however, is not backed by government money Zayo is using its own coffers.

Once all of Zayos work in Minnesota is done, the company will boast about 350 wireless tower sites featuring Ethernet and TDM connectivity.

Combining this new investment with assets from our acquisition of American Fiber Systems, the recently announced stimulus award, and Zayos existing Minnesota fiber network, Zayo will have a broad network to meet the growing communications and bandwidth needs” in Minneapolis, St. Paul, St. Cloud, Rochester, Owatonna and Northfield, Dan Caruso, Zayos president and CEO, said in a press release.