War and Data Centers Are Driving Up the Cost of Fiber-Optic Cable

Fiber-optic cable prices have surged significantly in 2026, driven by increased military demand for fiber-controlled drones and a boom in data center construction, according to industry sources and military reports.

Since 2023, the price of a kilometer of fiber-optic cable has nearly doubled, with some suppliers reporting costs rising from around $2.20 to over $4.10 in recent months. Ukrainian soldiers and military analysts confirm that the cost of spools has increased from approximately $300 for 50 km to as much as $2,500, reflecting a sharp rise in demand and supply constraints.

One major factor is the use of fiber-optic cables in combat drones, especially in Ukraine and other conflict zones like Iran and the Sahel, where the cables are used to control quadcopters over long distances. This military application, once a relatively inexpensive tactic, has become costly due to increased demand and supply shortages. Ukraine, which relies heavily on Chinese fiber due to destroyed domestic factories, reports that annual consumption of fiber-optic cable in the conflict zone is around 50-60 million kilometers, further straining the supply chain.

Meanwhile, the global demand for fiber-optic cable from data centers is intensifying as companies rush to expand infrastructure for artificial intelligence and cloud computing. Industry leaders like Corning CEO Wendell Weeks have indicated that hyperscalers are expected to become the largest customers in the near future, further driving up prices and causing supply shortages in the United States and elsewhere.

Why It Matters

This surge in fiber-optic cable prices impacts both military and civilian sectors. For militaries, especially those engaged in modern drone warfare, rising costs could limit operational capabilities and influence strategic planning. For the tech industry, supply shortages threaten to slow the expansion of data centers crucial for AI and cloud services, potentially increasing costs for consumers and businesses alike.

Additionally, the reliance on Chinese fiber and the destruction of domestic manufacturing facilities in conflict zones highlight vulnerabilities in global supply chains. The rising costs and shortages could lead to delays and increased expenses for infrastructure projects worldwide.

Background

Since the early 2020s, fiber-optic cable has become a critical component in both military and civilian communications. The use of fiber-controlled drones in Ukraine and other conflict zones has increased, as adversaries seek immunity from electronic jamming. Concurrently, a global push for expanded data center infrastructure to support AI and cloud computing has driven demand for fiber-optic cables, especially from large hyperscalers like Meta and Google.

Industry reports from 2025 indicated a looming “fiber famine” due to supply chain disruptions, with prices rising sharply in China, the primary source of fiber-optic cable for conflict zones and many nations. The destruction of Ukraine’s domestic fiber manufacturing plant in 2025 further exacerbated reliance on imports, mainly from China, which has seen prices more than double within a year.

“Fiber-optics is still happening at the battlefield, although not as much as it used to be. It’s extremely pricey now. We used to buy 50km spool for $300, now it’s easily $2500.”

— Dimko Zhluktenko, Ukrainian soldier

“Almost every phone call I get from my customers is trying to see, how do we get them more? I think next year the hyperscalers will be our biggest customers.”

— Wendell Weeks, CEO of Corning

“The drive toward the development and deploying at least partial autonomous control for drones to defeat electronic warfare jamming will accelerate as fiber optic FPVs become less available.”

— Roy Gardiner, OSINT analyst at Defense Tech

What Remains Unclear

It remains unclear how long supply chain disruptions will persist and whether new manufacturing facilities will be established to meet demand. The full impact of rising costs on military operations and civilian infrastructure expansion is still unfolding, and future price trajectories are uncertain.

What’s Next

Industry analysts expect continued price increases and supply shortages in 2026, with efforts underway to develop alternative manufacturing sources and improve supply chain resilience. Military and civilian sectors will likely adapt strategies, possibly accelerating autonomous drone development or seeking alternative communication methods.

Key Questions

Why are fiber-optic cable prices rising so rapidly?

Prices are driven by increased demand from military applications, especially fiber-controlled drones, and a surge in data center construction fueled by AI and cloud computing needs, combined with supply chain disruptions and factory closures.

How does this affect military operations?

Rising costs and shortages may limit the deployment of fiber-controlled drones and force militaries to seek alternative tactics or develop autonomous systems to maintain operational capabilities.

Will the supply shortages impact civilian infrastructure projects?

Yes, delays and higher costs for fiber-optic cable could slow or increase the expense of expanding internet and data center infrastructure globally.

Are there efforts to increase fiber manufacturing capacity?

Some industry and government initiatives are exploring new manufacturing facilities and alternative materials, but it is uncertain how quickly these will address current shortages.