AI demand is triggering a supply chain crisis for optical components including lasers, fibers, and connectors. Data center fiber demand is projected to grow 76% year-over-year in 2025. AI facilities require significantly more cabling than traditional data centers to manage massive data loads.
Lead times for critical optical components now extend to one year. Scaling production for technical materials like fiber preforms requires 18 to 24 months. Major tech companies are securing future capacity through multi-year supply agreements. These large-scale contracts are further tightening the available market for materials.