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Why Is Fiber in Short Supply? AI Demand Drives the 2026 Surge

Oct 16, 2026

Oyi international., Ltd. is a fibre optic cable company based in Shenzhen, China. Founded in 2006, OYI has a Technology R&D team of more than 20 specialists and exports its products to 143 countries, serving 268 long-term clients worldwide.

In 2026, sourcing optical fiber cable has become more challenging for buyers in many markets. Prices are rising, delivery times are getting longer, and suppliers are under pressure to meet growing demand. So, what is driving the current fiber shortage, and what does it mean for telecom operators, power utilities and network contractors?

The main factors are rising demand from AI data centers, limited manufacturing capacity and the time needed to expand production. These changes are affecting not only data center projects but also buyers of ADSS cable, OPGW cable, FTTH drop cable and underground duct cable.

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The Numbers Behind the 2026 Fiber Shortage

After a prolonged period of relatively weak pricing, the optical fiber market began to tighten in the second half of 2025, with price increases becoming more pronounced in early 2026. Industry reports indicate that fiber prices in China have reached their highest levels in approximately three years, while buyers in North America and Europe have also faced significant increases.

Global optical fiber demand is estimated to reach around 577 million fiber-kilometers in 2026, approximately 12% higher than in 2025. Traditional telecom construction remains an important source of demand, but AI infrastructure is adding considerable pressure to the market.

How AI Data Centers Are Changing Fiber Demand

AI data centers require high-speed connections between thousands of GPUs, servers and network switches. As these facilities grow, so does their need for optical fiber to support high bandwidth and efficient data transmission.

Unlike traditional telecom projects, large AI infrastructure developments can require substantial quantities of fiber within relatively short construction schedules. This creates additional competition for available supply, even as telecom operators continue expanding broadband networks and utilities upgrade their communication systems.

The result is a more competitive market in which buyers across different industries may face higher prices and longer procurement cycles.

The Real Bottleneck: Optical Fiber Preform Capacity

The shortage begins further up the supply chain, with optical fiber preforms. These specialized glass rods are drawn into thin optical fibers, which are then incorporated into finished cables.

Expanding preform production requires investment in specialized equipment, manufacturing facilities and quality control. As a result, supply cannot always keep pace with sudden increases in demand.

Cable manufacturers depend on a steady supply of optical fiber, so limited upstream capacity can affect production across multiple product categories. ADSS, OPGW, FTTH drop cable and underground duct cable may serve different applications, but all rely on the availability of suitable optical fiber.

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What the Shortage Means for ADSS and OPGW Projects

The impact extends beyond data centers to telecommunications and power infrastructure.

ADSS cable (All-Dielectric Self-Supporting) is designed for aerial installation on suitable existing pole and tower routes without a metallic strength member. It is widely used by telecom operators and utilities to expand communication networks.

OPGW cable (Optical Ground Wire) combines the functions of an overhead ground wire and an optical communication cable. Installed on suitable transmission towers, it provides grounding and lightning protection while supporting power system communications and monitoring.

Although their installation requirements differ, both products depend on optical fiber availability. When supply tightens, buyers may face higher material costs and longer lead times.

For large projects, confirming fiber counts, technical specifications and delivery schedules early can help reduce procurement risks and avoid unnecessary changes during production.

How Buyers Can Manage the Fiber Shortage

Although buyers cannot control global fiber supply, careful planning and supplier coordination can help reduce procurement risks and keep projects on schedule. The following steps are worth considering when purchasing ADSS cable, OPGW cable, FTTH drop cable and other fiber optic products.

1.Plan ahead. Share estimated demand with suppliers as early as possible, especially for large ADSS and OPGW projects. Providing preliminary order quantities and expected delivery dates allows suppliers to assess material availability and production schedules before orders are finalized.

2.Secure supply where possible. For projects involving regular or large-volume purchases, framework agreements and rolling forecasts can help suppliers plan production and raw material requirements. Buyers should also confirm whether agreed delivery schedules and quantities can be maintained if market conditions change.

3.Finalize specifications before ordering. Confirm fiber counts, cable structure, required span lengths, sheath materials and applicable testing standards before production begins. Frequent changes to technical specifications can complicate production planning, increase costs and delay delivery.

4.Evaluate suppliers beyond price. A competitive quotation is important, but production capacity, quality control, export experience and communication are equally worth considering. A supplier that provides timely updates and coordinates production, inspection, packing and shipping documentation effectively can help reduce unexpected problems throughout the order process.

5.Allow sufficient time for production and delivery. When preparing a project schedule, consider not only manufacturing lead times but also inspection, packing, documentation, customs procedures and international transportation. Keeping a reasonable time allowance can help prevent shipping delays from affecting installation and commissioning.

In some cases, it may also be worth discussing alternative cable configurations or standardized specifications with the engineering team. Any adjustments should be carefully evaluated to ensure they meet the project's technical requirements, applicable standards and long-term performance expectations. The goal is to improve procurement flexibility without compromising network reliability.

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How Long Will the Fiber Shortage Last?

There is no clear date for when supply and demand will return to balance. The outlook depends on AI investment, telecom expansion and how quickly new preform and fiber production capacity becomes available.

Even when new facilities begin operating, increasing output takes time. Prices and lead times may also vary by region, product specification and order volume.

For buyers, the most practical approach is to monitor market conditions, review quotations regularly and maintain close communication with suppliers instead of relying on a quick return to earlier prices.

The 2026 fiber shortage reflects a combination of growing AI data center demand, limited upstream manufacturing capacity and continued investment in telecom and power infrastructure.

For buyers of ADSS cable, OPGW cable, FTTH drop cable and other fibre optic products, early planning and reliable supplier coordination are increasingly important.

Oyi international., Ltd. provides fibre optic products and network solutions to customers in 143 countries, supported by a Technology R&D team of more than 20 specialists and long-term partnerships with 268 clients.

Planning your next fibre optic cable project? Contact OYI to discuss your requirements for ADSS cable, OPGW cable, FTTH drop cable and other fibre optic solutions.

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