AI infrastructure demand drives fibre optic price increases

Demand from AI intelligent computing centres, China’s “East Data, West Computing” initiative and transoceanic submarine cable projects is tightening supply across the fibre optic market. The pressure is concentrated upstream, where the expansion cycle for optical fibre preforms takes 18-24 months, leaving capacity unable to respond quickly to rising infrastructure needs.

Fibre optic prices have been raised significantly in 2026 as buyers compete for limited supply. Hollow-core fibre and ultra-low-loss G.654E high-end fibre are described as rigid demand for computing power backbones, reflecting the growing role of advanced fibre in data-intensive networks.

Top-tier suppliers have secured orders through long-term agreements until 2028, underscoring expectations that demand tied to computing infrastructure and submarine connectivity will remain strong. The locked-in contracts also suggest leading players are prioritizing visibility and supply assurance while the industry waits for new preform capacity to come online.