Optical Fiber Spot Prices Surge Severalfold in 2026 (www.trendforce.com)

Optical fiber spot prices are expected to surge significantly in 2026, climbing to 2.8 to 5 times their 2025 levels, as a result of escalating demand from AI data centers and related infrastructure. According to TrendForce, a global supply shortfall of 180 million fiber-kilometers is projected for 2026, driven primarily by growing data center construction, which will account for approximately 30-35% of the total demand by 2027. This persistent demand has led telecom operators to shift from short-term purchases to long-term supply agreements (LTAs) to secure necessary fiber supplies amid tightening inventory. The current supply squeeze reflects a unique shift in the telecommunications industry, largely fueled by sustained demand from AI-related deployments rather than cyclical market fluctuations. With global optical fiber capacity utilization hitting 92% and inventory levels plummeting to just one month, supply growth is hindered by lengthy production ramp-up times. Companies like Verizon and Corning have already entered multi-year agreements to secure fiber for future needs, indicating a strategic shift in how telecom operators are managing rising supply constraints. As AI data centers continue to expand and demand surges, long-term planning for fiber supply is poised to become the norm in the sector.