AI, digital transformation helping to fuel boom in bandwidth demand with infrastructure shortage looming
What you’ll learn:
- Nearly 200 million fiber miles will be needed to meet capacity projections by 2030 and to avoid a bandwidth shortage.
- New AI use cases are spurring a record number of large-scale wavelength and fiber purchases.
- Bandwidth’s growth rate has been "astronomical," according to Zayo. From 2023 to 2024 alone, metro dark fiber purchasing increased 268% and longhaul dark fiber purchasing increased 52.6%.
Bandwidth usage showed up this week in key findings from one study as an indicator of just how much AI adoption and digital transformation appears to be superheating.
The highest data point from Zayo’s Bandwidth Report, released on June 24, showed that nearly 200 million fiber miles will be needed to meet capacity projections by 2030, to avoid a bandwidth shortage.
Also, according to the report, large bandwidth use cases are consuming more than ever, fueled by AI and digital transformation.
During a four-year period, 2020 to 2024, the report says, hyperscalers and carriers made 91.2% of all metro dark fiber purchases and 66.8% of all wavelength deals exceeding 1 terabytes of capacity, said Zayo, a global communications infrastructure provider based in Boulder, Colorado.
New AI use cases are spurring a record number of large-scale wavelength and fiber purchases, predominantly from hyperscalers, software, and tech companies looking to gain a competitive advantage through technology, according to the Zayo report.
The report also says manufacturing experienced some of the largest growth in bandwidth demand as a result of digital acceleration and rapid reindustrialization across North America. Between 2020 and 2024, the sector saw a 364.34% growth in wavelength capacity purchased, surging from 1.88 terabytes to 8.71 terabytes.
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“We’re seeing a huge surge in bandwidth demand across the manufacturing space,” said Amanda Shear, VP of business and consumer services at Zayo.
“As companies work to adopt cutting-edge technologies—and navigate everything from geopolitical shifts to supply chain disruptions—they’re relying more on data-heavy tools like AI-driven automation, IoT monitoring, digital twins, and real-time analytics,” Shear added.
“However, none of this is possible without strong, resilient networks. Modern manufacturing is all about fast, smart decisions, and that requires infrastructure that can keep up. At this point, bandwidth isn’t just a nice-to-have—it's the backbone of agile, intelligent manufacturing.”
What’s igniting the explosion in bandwidth consumption?
The Zayo report analyzed bandwidth consumption in the four-year period prior to 2025 among Zayo’s customers and network decision-makers, and it extrapolated from third-party industry research—all parties revealing that bandwidth demand is surging across hyperscalers, carriers, and enterprises, and a significant increase in fiber is needed to meet projected capacity strains.
Zayo’s third-party research found that a projected 120 million longhaul fiber miles and 70 million metro fiber miles will be needed to meet capacity projections by 2030. Without this additional infrastructure, a bandwidth shortage is imminent.
“Increased connectivity demands from data centers, hyperscalers, and carriers are on track to create bandwidth scarcity in the near future,” added Bill Long, Zayo’s chief product and strategy officer. “If you’re not getting the bandwidth you need today, in 10 years it may be too late.”
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Bandwidth’s growth rate has been astronomical, according to the Zayo report. In one year, between 2023 and 2024, metro dark fiber purchasing increased 268%. In the same period, longhaul dark fiber purchasing increased 52.6%.
According to its third-party research, metro fiber demand and longhaul fiber demand are expected to continue to grow by an average of about 20% and approximately 35%, respectively, year-over-year over the next five years.
Data centers drive the bandwidth bus
Emerging data center markets are gaining momentum as well. Demand for longhaul routes and metro wavelength connectivity skyrocketed in nontraditional, emerging data center hubs like Memphis and Salt Lake City in the U.S., increasing by 4,300% and 348.28% year-over-year, respectively, from 2023 to 2024.
See also: More than half of manufacturers piloting digital transformation, Rockwell Automation reports
These cities offer ideal geospatial optimization between fiber and power, according to a Zayo release, ensuring enough fiber can be built in locations with more affordable energy sources to meet demand.
The software and technology industry also saw a massive 450% increase in wavelength capacity purchased, from 9.6 terabytes to 52.12 terabytes, as this sector continues to demand more bandwidth to handle growing data demands, to power cloud services, and to ensure seamless performance for cutting-edge applications, according to the Zayo report.
