Fiber Seen as Critical Infrastructure for AI-Driven Data Center Expansion
A new report argues fiber is central to the next phase of U.S. data center expansion.
WASHINGTON, Feb. 19, 2026 – Surging demand from artificial intelligence, cloud computing, and enterprise services is reshaping where U.S. data centers are being built, according to a Feb. 2026 white paper from the Fiber Broadband Association that identified fiber infrastructure as the essential enabler of that shift.
As traditional hubs face tightening power supply, rising land costs, and network congestion, developers are increasingly evaluating secondary metros, edge locations, and rural communities. The report argued that regions with strong fiber backbones, reliable power access, and available land are best positioned to attract new investment.
The scale of growth has been considerable. The paper noted that U.S. data center bandwidth purchases increased 330 percent between 2020 and 2024, and that fiber route miles may need to nearly double from roughly 95,000 miles today to 187,000 by 2029 in order to meet projected demand. Network infrastructure supporting data centers is expected to become a $20 billion market in the coming years.
Fiber, the report says, delivers the capacity, ultra-low latency, and scalability required for AI workloads and hyperscale deployments. Whereas single-mode fiber remains the foundational access technology, advanced designs such as multi-core and hollow-core fiber are emerging to support high-capacity interconnection between facilities.
“Fiber connectivity offers unmatched capacity, low latency, and scalability—qualities essential for powering hyperscale AI applications, quantum computing, and distributed data center networks,” said Deborah Kish, Vice President of Research & Workforce Development at FBA. “Communities and providers that invest in fiber today are positioning themselves to capture economic opportunity, attract new businesses, and enable the next generation of technology innovation.”
The paper also framed data center expansion as an economic development opportunity for rural providers and electric cooperatives. Communities with existing middle-mile infrastructure can leverage that foundation to attract hyperscale or regional deployments, diversify revenue, and strengthen long-term digital resilience.
At the same time, the report cautioned that fiber alone is not sufficient. Power availability, workforce readiness, and adequate regional transport capacity remained critical constraints. In particular, it warned that communities may have local fiber access but lack the middle-mile connectivity necessary to support large-scale facilities, situating transport infrastructure as a potential bottleneck in the next phase of expansion.
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