AI-Driven Demand Pushes Fiber Prices to Seven-Year High, Reshaping Optical Communications Market

Prices for mainstream communication optical fiber in China have continued to climb, with G.652.D fiber exceeding 50 yuan per fiber-kilometer—the highest level in seven years, according to industry monitoring data from CRU and domestic fiber industry institutions. The sharp increase is primarily driven by robust demand from AI computing centers, the “East-to-West Data Computing” initiative, and next-generation computing power networks, where optical fiber serves as critical infrastructure for high-speed interconnection.

Structural Demand from AI Computing Centers

Industry statistics show that more than 210 new intelligent computing centers are planned in China for 2026, a year-on-year increase of 65%. Compared with traditional data centers, AI clusters demand significantly higher fiber density, greater bandwidth capacity, and lower signal loss, consuming nearly three times as much fiber per facility. This structural growth has directly driven up demand for optical fiber and related components.

Strategic Partnerships Strengthen Industrial Collaboration

At the same time, leading enterprises are deepening industrial cooperation. Hengtong Optic-Electric and Huawei have formally launched a strategic partnership focused on AI + optical communications. The two companies will jointly develop next-generation technologies, including hollow-core fiber, high-speed optical transceivers, and all-optical computing networks, supporting the construction of a self-reliant, high-performance optical ecosystem tailored for large-scale AI clusters.

Industry Outlook: A Value-Driven Shift

Industry analysts note that this round of price increases is not a short-term fluctuation, but a key signal that the industry is shifting from traditional telecommunications infrastructure to AI computing infrastructure. After years of price competition, the industry is moving toward a performance- and value-driven model.

Looking ahead, sustained construction of intelligent computing centers and the mass deployment of 800G/1.6T high-speed optical modules will continue to support strong demand. Companies with technological advantages, large-scale production capacity, and integrated industrial chain capabilities are expected to gain greater competitiveness amid this industry-wide value reshaping.