AI and Data-Center Demand Tighten Global Fiber Capacity, Research Cited by TechNews Says

The fiber-optic market is being increasingly driven by the compute buildout rather than by the conventional telecommunications cycle, according to a TechNews report citing research from TrendForce.

The publication says capital expenditure by five leading cloud providers has been revised up to US$740 billion for 2026. It links this investment outlook to a projected 75.9% year-on-year increase in data-center fiber demand during 2026.

Global fiber-industry utilization is projected to reach 92%, described by the source as a cyclical peak. The report also indicates that order visibility extends into the first quarter of 2027. It characterizes the combined effect of telecom and AI-related demand as a structural shortage that cannot be relieved quickly.

For data-center operators, hyperscalers and infrastructure suppliers, fiber availability matters beyond external connectivity. Large AI clusters and expanding data-center networks require substantial high-performance cabling infrastructure, making constrained supply a potential input to construction and expansion schedules.

If this demand pattern is sustained, fiber could shift from a standard cyclical telecom component to a supply-chain constraint for AI data centers. That could increase pressure on procurement prices, delivery lead times and the availability of high-performance cable infrastructure, although the publication provides no breakdown by fiber type, supplier or project.