The escalating demand for fiber-optic cable, driven by both Ukraine's extensive use in unjammable battlefield drones and the burgeoning needs of AI data centers, is leading to increased costs and supply chain challenges. While Ukraine and Russia produce approximately 50,000 fiber-optic drones monthly, China's significant exports of this material, particularly to Russia, are creating a supply disparity. This situation is forcing Ukrainian drone manufacturers to adapt and seek alternative solutions. AI
IMPACT AI data center demand is increasing the cost of essential components for military drones, potentially impacting defense supply chains.
RANK_REASON Significant impact on a key industry (AI infrastructure) due to competition for resources with a major geopolitical event (Ukraine war). [lever_c_demoted from significant: ic=1 ai=0.7]
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