I. Demand Side: AI Computing Power and Global Digital Infrastructure Drive Structural Shift in Demand
AI Data Centers Become Core Driving Force: Tech giants like Meta and Microsoft are building hyperscale AI data centers, with each data center using 3-5 times more fiber than traditional cloud data centers. For example, Meta's Louisiana project requires the procurement of 8 million miles of fiber.
Global Demand Continues to Unleash: CRU data shows that global fiber optic cable demand will increase by 4.1% year-on-year in 2025, with data center-related demand surging by 75.9% year-on-year. CICC predicts that the proportion of data center fiber optic demand driven by AI will jump from less than 5% in 2024 to 35% in 2027.
Domestic "East-to-West Computing" and Overseas Order Repatriation: China continues to promote the "East-to-West Computing" project, while a large number of overseas broadband construction orders are returning to China, further intensifying the competition for supplies.
II. Supply Side: Preform Capacity Rigidly Constrained, Expansion Cycle Long (1.5-2 Years)
Fiber optic preforms are a key bottleneck: accounting for approximately 70% of fiber optic costs, their production relies on high-purity silica sand and precision deposition processes, resulting in high technological barriers.
Long Expansion Cycle: A preform production line requires 1.5-2 years from construction to stable mass production, making it difficult to quickly respond to short-term surges in demand.
Tight Capacity of Leading Companies: High-quality fiber optics are in short supply, and the production cycle for some orders has been extended to several months.