Smarter, not faster: AI infra’s sobering effect on fiber strategy
While the AI data center boom is undoubtedly an opportunity for the fiber industry, it also presents something of a challenge.
Sure, investment in network infrastructure is rarely a bad thing. I can’t help, however, getting flashbacks to the early 2000’s - operators pouring billions into fiber, without proven demand.
This resulted in stranded assets, empty capacity, and ultimately, a bust that hampered telecoms for nearly a decade.
This time around, as serious AI momentum continues to grow, with megawatt campuses, GPU clusters, hyperscaler capex announced seemingly every week, the temptation to ‘follow the boom’ is rearing its head again.
I’m optimistic, however, that the industry has learnt its lesson. Not just to avoid overspend, but to be far more targeted about where fiber actually gets built, what kind of fiber is needed, and which partnerships can make new routes commercially viable.
AI demand is real, but discipline will be...
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