TL;DR
The cost of fiber-optic cable has surged due to increased military use in conflict zones and a boom in data center infrastructure for AI. Prices have nearly doubled since late 2025, affecting supply and strategic military tactics.
Fiber-optic cable prices have nearly doubled in recent months, driven by increased military use in Ukraine, Iran, and Africa, as well as a surge in demand from data centers building infrastructure for AI, according to industry sources.
Since 2023, the price of a kilometer of fiber-optic cable has risen from around $2.20 to over $4.10 in early 2026, with some suppliers warning of a ‘fiber famine’ by the end of the year. The increase is largely due to heightened demand from military conflicts, such as Ukraine and Russia, which utilize fiber-optic cables for drone operations that are immune to electronic jamming.
Simultaneously, the global data center industry, driven by the expansion of AI technologies, is rapidly increasing its need for fiber-optic infrastructure. Major manufacturers like Corning report that hyperscalers are becoming their biggest customers, and supply shortages are already affecting US ISPs, with some orders canceled or delayed.
Most fiber-optic cables used in conflicts are imported from China, as Ukraine and Russia lack domestic manufacturing capacity. The destruction of Ukraine’s sole fiber factory in 2025 has further strained supply, forcing reliance on imports that have seen prices more than double within a year.
Why It Matters
This surge in fiber-optic cable costs impacts both military operations and commercial infrastructure development. For militaries, especially those engaged in modern drone warfare, rising cable prices threaten operational costs and strategic capabilities. For the private sector, supply shortages and higher prices may slow the deployment of new data centers and AI infrastructure, potentially affecting technological progress and internet services.
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Background
Fiber-optic cables have become integral to military drone tactics, especially in Ukraine and Iran, where they provide secure, jam-proof control links. The demand for these cables grew sharply after Russia’s deployment of fiber-controlled FPV drones in 2023, which proved effective against traditional electronic warfare.
Meanwhile, the global push for AI and cloud computing has led to a boom in data center construction, further increasing demand. Industry leaders like Corning have reported record orders, but supply chain issues and rising raw material costs, particularly in China, have driven prices upward.
Ukraine’s destruction of its domestic fiber factory in 2025 and reliance on Chinese imports have created vulnerabilities, with prices soaring from around $2.33 per km in 2025 to over $5.80 in 2026.
“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. Just so you know.”
— 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
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What Remains Unclear
It is still unclear how long the supply shortages and high prices will persist, or whether new domestic manufacturing capacities will emerge to alleviate dependency on Chinese imports. The full impact of these cost increases on military and civilian infrastructure development remains to be seen.
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What’s Next
Industry analysts expect continued price volatility through 2026, with potential for new supply chain initiatives or alternative technologies to emerge. Military and commercial sectors will likely adapt strategies to cope with the rising costs, possibly accelerating development of autonomous or wireless drone control systems.
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Key Questions
Why are fiber-optic cable prices increasing so rapidly?
Prices are rising due to increased demand from military conflicts, especially for drone operations, and a booming data center industry for AI, combined with supply chain disruptions and reliance on Chinese manufacturing.
How does the cost increase affect military drone operations?
Higher fiber-optic cable costs may limit the scale and operational range of fiber-controlled drones, potentially prompting the military to seek alternative control methods or develop autonomous systems.
Will domestic manufacturing of fiber-optic cables help reduce costs?
It could, but currently, Ukraine and Russia lack significant domestic production, and rebuilding capacity or establishing new factories would take time. Dependence on Chinese imports is likely to continue in the near term.
Are there alternatives to fiber-optic cables for drone control?
Yes, technologies like satellite links and high-capacity wireless systems are being explored, but fiber-optic remains preferred for its immunity to jamming and long-distance reliability.
