Data Center Cabling Market Set to Hit $27 Billion by 2035

AI workloads are fundamentally altering the economics of data center construction. While conventional facilities spent approximately $0.43 million per megawatt on cabling in 2025, AI-oriented data halls required $1.07 million per megawatt. This disparity stems from the need for dense accelerator-to-accelerator connectivity, as emerging architectures like 800G and 1.6T push bandwidth requirements beyond the practical limits of traditional copper, favoring fiber optics instead.

Fiber optic cables already dominate the landscape, capturing 47.6% of the market in 2025. With a projected compound annual growth rate of 12.14%, this segment is expected to reach $15.94 billion by 2035. Beyond initial construction, the market benefits from a recurring refresh cycle; as operators upgrade network architectures to accommodate higher speeds, existing infrastructure requires periodic, high-value replacement.

Major industry players are securing their positions through long-term procurement agreements and strategic consolidation. Recent activity includes Amphenol’s $10.5 billion acquisition of CommScope’s connectivity business and a $6 billion multiyear fiber supply deal between Corning and Meta. These moves highlight a new reality: cabling is no longer a passive utility but a critical, strategic bottleneck in the global AI supply chain.