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.
