Industry News
As data centers chase electricity, will fiber follow?
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Author : JIUZHOU
Update time : 2025-10-17 09:41:31
The data center industry is starting a "chase for power." A recent forum bringing together leaders from the data center and fiber optic industries engaged in in-depth discussions. Notably, the organizers specifically invited power generation companies to participate in the discussion.
The theme of future events is now "Energy and Connectivity." This shows that power supply is a key limit to industry growth.
Executives from a fiber optic company attended the conference. They mentioned receiving many connection requests from data center developers.
To get enough power, data center projects are now often located outside big cities. This is forcing fiber optic providers to consider deploying networks in areas that have traditionally been uneconomical.
This situation is reminiscent of government-driven broadband access programs—despite significant investment, actual connectivity progress has been slow. This raises a question: Can data center construction offer an opportunity to connect rural areas? The answer partly depends on whether fiber optic providers will accept the cooperation terms from data center operators.
"Feasibility doesn't equal necessity," a senior fiber optic executive noted. "We must ensure the project's financial viability."
During the panel discussion, several experts shared the fiber optic industry's view on government subsidies. They said, "If a region is worth building at the start of a project, network coverage should already be in place." Lack of coverage simply indicates objective obstacles."
So, how can one convince fiber optic suppliers to dedicate dedicated infrastructure to data center projects? "The key is to believe in the value of not just one node, but the whole line," said the head of an infrastructure company.
He noted that the cost of deploying fiber is high. However, it is only a small part of the multi-billion dollar investment needed for data centers. This opens up the chance for collaboration.
Some fiber optic companies have secured expansion funding by bringing in strategic investors. "We've focused on metro fiber for 25 years," said one CEO. "In the past three years, hyperscale data centers have garnered all the attention, and our focus has shifted accordingly."
He said that current customer demand is for large-scale fiber deployments. "The amount of fiber and the size of pipelines needed are truly amazing."
The CEO said about fiber optic deployment in remote areas, "We want major customers to pay for most of the costs." However, he acknowledged that there are exceptions. "When it comes to big AI computing centers that can create jobs and add value, relaxing financial standards can still make sense for investment."
The CFO of a public fiber optic company said that public companies need stricter financial discipline. He also mentioned that "new competitors are entering the market, and construction subsidies from hyperscale customers are going down."
Metropolitan area demand is also not to be ignored. Experts say that current fiber optic networks in cities often cannot meet the needs of new data centers. They predict that in the next few years, there will be a major upgrade of fiber optic systems across the country. This includes both city networks and long-distance connections.
A representative of a major telecommunications group confirmed that the industry is investing heavily in fiber optic networks. He outlined a comprehensive deployment strategy:
"Our commercial assets are planned in tandem with residential assets and mobile communications infrastructure. If there are homes along the route, we can set up communication base stations. This is usually the case. These base stations can help lower some of the costs for deploying fiber.
The representative also said the company is setting up high-speed optical lines in some areas. They stated, "We can activate these lines within 24 hours," and added that the plan is "coming soon."
The head of interconnection at a data center said they will be one of the first customers for this service. Unlike traditional hyperscale data centers, the company's strategy focuses on metropolitan areas. "We choose to expand in big cities with many data, networks, and users," said the technical director.
These city projects also need upgrades to the fiber network. Providers might see them as less risky than remote AI computing centers.
However, these massive computing facilities also require network connectivity. If traditional fiber providers cannot meet the demand, new companies with better cost structures will fill the gap. This collaborative development around data centers and fiber is reshaping the entire digital infrastructure industry.
The theme of future events is now "Energy and Connectivity." This shows that power supply is a key limit to industry growth.
Executives from a fiber optic company attended the conference. They mentioned receiving many connection requests from data center developers.
To get enough power, data center projects are now often located outside big cities. This is forcing fiber optic providers to consider deploying networks in areas that have traditionally been uneconomical.
This situation is reminiscent of government-driven broadband access programs—despite significant investment, actual connectivity progress has been slow. This raises a question: Can data center construction offer an opportunity to connect rural areas? The answer partly depends on whether fiber optic providers will accept the cooperation terms from data center operators.
"Feasibility doesn't equal necessity," a senior fiber optic executive noted. "We must ensure the project's financial viability."
During the panel discussion, several experts shared the fiber optic industry's view on government subsidies. They said, "If a region is worth building at the start of a project, network coverage should already be in place." Lack of coverage simply indicates objective obstacles."
So, how can one convince fiber optic suppliers to dedicate dedicated infrastructure to data center projects? "The key is to believe in the value of not just one node, but the whole line," said the head of an infrastructure company.
He noted that the cost of deploying fiber is high. However, it is only a small part of the multi-billion dollar investment needed for data centers. This opens up the chance for collaboration.
Some fiber optic companies have secured expansion funding by bringing in strategic investors. "We've focused on metro fiber for 25 years," said one CEO. "In the past three years, hyperscale data centers have garnered all the attention, and our focus has shifted accordingly."
He said that current customer demand is for large-scale fiber deployments. "The amount of fiber and the size of pipelines needed are truly amazing."
The CEO said about fiber optic deployment in remote areas, "We want major customers to pay for most of the costs." However, he acknowledged that there are exceptions. "When it comes to big AI computing centers that can create jobs and add value, relaxing financial standards can still make sense for investment."
The CFO of a public fiber optic company said that public companies need stricter financial discipline. He also mentioned that "new competitors are entering the market, and construction subsidies from hyperscale customers are going down."
Metropolitan area demand is also not to be ignored. Experts say that current fiber optic networks in cities often cannot meet the needs of new data centers. They predict that in the next few years, there will be a major upgrade of fiber optic systems across the country. This includes both city networks and long-distance connections.
A representative of a major telecommunications group confirmed that the industry is investing heavily in fiber optic networks. He outlined a comprehensive deployment strategy:
"Our commercial assets are planned in tandem with residential assets and mobile communications infrastructure. If there are homes along the route, we can set up communication base stations. This is usually the case. These base stations can help lower some of the costs for deploying fiber.
The representative also said the company is setting up high-speed optical lines in some areas. They stated, "We can activate these lines within 24 hours," and added that the plan is "coming soon."
The head of interconnection at a data center said they will be one of the first customers for this service. Unlike traditional hyperscale data centers, the company's strategy focuses on metropolitan areas. "We choose to expand in big cities with many data, networks, and users," said the technical director.
These city projects also need upgrades to the fiber network. Providers might see them as less risky than remote AI computing centers.
However, these massive computing facilities also require network connectivity. If traditional fiber providers cannot meet the demand, new companies with better cost structures will fill the gap. This collaborative development around data centers and fiber is reshaping the entire digital infrastructure industry.
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