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Techday NZ
26-06-2025
- Business
- Techday NZ
Zayo report reveals soaring fibre demand driven by AI & cloud
Zayo has released its inaugural Bandwidth Report, highlighting a significant surge in bandwidth demand mainly driven by hyperscalers, carriers, and software and technology companies. The study analyses trends from 2020 to 2024 and draws on both customer and third-party industry data. A key finding was that overall wavelength capacity purchased grew by 2.8 times over the four-year period, a development attributed largely to artificial intelligence (AI) training, inference, and evolving workloads. Purchases of metro dark fibre increased by 268% while long-haul dark fibre purchases rose 52.6% year-over-year between 2023 and 2024. In 2024, an unnamed data centre operator reportedly closed a deal for 6,912 fibre count, a massive 2,300% rise compared with the largest deal seen just four years before. Zayo's third-party research estimates that nearly 200 million additional fibre miles will be required by the year 2030 to meet projected capacity needs and avert a potential bandwidth shortage. Of this, 120 million miles will be long-haul fibre and 70 million miles will be metro fibre. Connectivity demand fuels growth In its report, Zayo points toward increased connectivity demands from AI and digital transformation initiatives as influential factors. Between 2020 and 2024, hyperscalers and carriers accounted for 91.2% of all metro dark fibre purchases and 66.8% of all wavelength deals exceeding one terabyte of capacity with Zayo. The report finds these large-scale bandwidth purchases are mainly being driven by companies aiming to secure competitive advantage through emerging technologies. "Increased connectivity demands from data centers, hyperscalers, and carriers are on track to create bandwidth scarcity in the near future. If you're not getting the bandwidth you need today, in 10 years it may be too late," explains Bill Long, Chief Product & Strategy Officer at Zayo. "Failure to address connectivity lags could lead to operational bottlenecks, resource shortages, and long-term competitive disadvantage." Emerging markets and regional growth The report identifies substantial growth in emerging data centre markets, with demand for long-haul and metro wavelength connectivity rising dramatically in non-traditional hubs. Memphis and Salt Lake City, for example, saw increases of 4,300% and 348.28% respectively in long-haul route and metro wavelength connectivity demand between 2023 and 2024. Zayo noted that these cities present optimal locations for fibre investment, providing low-cost energy and the capacity for new infrastructure builds. Vertical sectors also showed major changes in usage. Manufacturing recorded an increase of 364.34% in wavelength capacity purchased between 2020 and 2024, rising from 1.88 terabytes to 8.71 terabytes. The software and technology sector experienced even more pronounced growth, purchasing 52.12 terabytes of wavelength capacity in 2024 compared to just 9.6 terabytes in 2020, an increase of 450%. Remote access and satellite integration Zayo's report noted that the combination of terrestrial networks and satellite providers is expanding coverage to previously underserved areas, supporting emergency communications and network resilience. The growing use of these integrated networks, particularly in support of Internet of Things (IoT) applications, is further contributing to overall bandwidth demand. Seamless integration between terrestrial and satellite infrastructure is leading to increased resource needs, particularly as IoT adoption continues to extend into remote regions. Fibre investment and company response To address forecasted capacity gaps, Zayo has committed to developing additional fibre infrastructure, including the construction of over 5,000 new long-haul fibre route miles. The company has started work on a new 385-mile route linking Chicago and Columbus as part of this pledge. Additionally, Zayo announced plans to acquire Crown Castle's fibre solutions business, potentially adding 100,000 metro route miles to its network. Bill Long commented on the importance of timely investment and the risks of not keeping pace with demand: "Increased connectivity demands from data centers, hyperscalers, and carriers are on track to create bandwidth scarcity in the near future. If you're not getting the bandwidth you need today, in 10 years it may be too late," explains Bill Long, Chief Product & Strategy Officer at Zayo. "Failure to address connectivity lags could lead to operational bottlenecks, resource shortages, and long-term competitive disadvantage." The Zayo Bandwidth Report concludes that ongoing investments in fibre infrastructure are essential to support expected growth in emerging technologies and the increasing needs of cloud, AI, and enterprise users across the sector.
National Post
24-06-2025
- Business
- National Post
Exploding Data Consumption Signals New Era for Fiber Infrastructure, Zayo Report Finds
Article content Nearly 200 million fiber miles will be needed to meet capacity projections by 2030 and avoid a bandwidth shortage Article content DENVER — Zayo, a leading global communications infrastructure provider, today released The Zayo Bandwidth Report: Key Trends Driving the Bandwidth Boom, analyzing bandwidth consumption trends from 2020 to 2024 across customers, network decision-makers, and third-party industry research. The research revealed that bandwidth demand is growing rapidly across hyperscalers, carriers, and enterprises, and a significant increase in fiber is needed to meet projected capacity strains. Specifically, Zayo's third-party research found that a projected 120 million long-haul 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. Article content 'Increased connectivity demands from data centers, hyperscalers, and carriers are on track to create bandwidth scarcity in the near future. If you're not getting the bandwidth you need today, in 10 years it may be too late,' explains Bill Long, Chief Product & Strategy Officer at Zayo. 'Failure to address connectivity lags could lead to operational bottlenecks, resource shortages, and long-term competitive disadvantage.' Key Findings: Article content Bandwidth's growth rate is astronomical: Between 2023-2024, metro dark fiber purchasing increased 268%. In the same timeframe, long-haul dark fiber purchasing increased 52.6%. According to Zayo's third-party research, metro fiber demand and long-haul fiber demand are expected to continue to grow by an average of ~20% and ~35%, respectively, year-over-year over the next five years. Fueled by AI and digital transformation, large bandwidth use cases are consuming more than ever: Between 2020-2024, hyperscalers and carriers made 91.2% of all metro dark fiber purchases and 66.8% of all wavelength deals exceeding 1TB of capacity with Zayo. 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. Emerging data center markets are gaining momentum: Demand for long-haul routes and metro wavelength connectivity skyrocketed in non-traditional, emerging data center hubs like Memphis and Salt Lake City, increasing by 4,300% and 348.28% year-over-year, respectively, from 2023 to 2024. These cities offer ideal geospatial optimization between fiber and power, ensuring enough fiber can be built in locations with more affordable energy sources to meet demand. Vertical markets see record demand growth: The manufacturing sector 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 TB to 8.71 TB. The software and technology industry also saw a massive 450% increase in wavelength capacity purchased, from 9.6 TB to 52.12 TB, as this sector continues to demand more bandwidth to handle growing data demands, power cloud services, and ensure seamless performance for cutting-edge applications. Increased access to remote areas is causing additional demand: Partnerships between terrestrial giants and satellite providers aim to eliminate dead zones, boost emergency communication, and enhance network resilience, but they also drive up bandwidth demands. Seamless integration between terrestrial networks and satellites enables IoT adoption in remote areas, further increasing resource pressure. Article content What This Means Article content As widespread growth in bandwidth consumption continues and is projected to increase, it's clear that innovative organizations need more bandwidth to enable the usage of AI and emerging technologies. But building the fiber networks needed to deliver this bandwidth at scale is complex, costly, and risky without the right expertise in place. Article content As the only company to build long-haul fiber networks at scale in the last decade, Zayo is actively investing to deliver the critical fiber infrastructure to avert a potential bandwidth gap. In January, the company rolled out plans to build more than 5,000 long-haul fiber route miles to meet the growing demands of AI workloads. Zayo recently advanced construction on the first of this long-haul fiber commitment with a new 385-mile fiber route between Chicago and Columbus. In addition, in March, the company announced plans to acquire Crown Castle's fiber solutions business, which will add 100,000+ metro route miles to Zayo's network to support enterprise and AI-driven bandwidth growth. Article content To view the full report and learn how Zayo helps customers meet escalating digital demands while future-proofing their infrastructure, visit: About Zayo For more than 17 years, Zayo has empowered some of the world's largest and most innovative companies to connect what's next for their business. The Zayo group of companies connects 400 global markets with future-ready networks that span over 19 million fiber miles and 147,000 route miles. Zayo's tailored connectivity solutions and managed services enable carriers, cloud providers, data centers, schools, and enterprises to deliver exceptional experiences, from core to cloud to edge. Discover how Zayo connects what's next at and follow us on LinkedIn. Article content Article content Article content Article content
