The burgeoning demand for AI data centers is creating a severe shortage of optical fiber, with lead times stretching to a full year. These specialized data centers require significantly more fiber than traditional ones, straining the supply chain which cannot expand preform production quickly enough. Manufacturers are prioritizing higher-margin fiber for AI applications, leading to shortages and price increases for standard telecom-grade fiber, while major tech companies are securing multi-year supply agreements. AI
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IMPACT Accelerated build-out of AI infrastructure is constrained by a critical shortage of optical fiber, impacting deployment timelines and costs.
RANK_REASON Significant supply chain disruption driven by AI infrastructure demand. [lever_c_demoted from significant: ic=1 ai=0.7]
