Fiber providers expand into hyperscale data center markets

Fiber infrastructure providers Lightpath and Clearfield are expanding into the hyperscale data center market to meet rising demand for AI-centric applications and high-bandwidth connectivity.

Lightpath is investing between $200 million and $300 million in capital expenditures to support fiber expansion and the construction of new hyperscale data centers in Michigan and Wisconsin. Each of these facilities is expected to exceed one gigawatt of capacity. The company has also expanded its network presence in Pennsylvania and Atlanta, reporting a 32% annualized growth in IP traffic driven by enterprise AI adoption.

Clearfield has secured a $22 million order for hyperscale data center connectivity, marking a significant move beyond its traditional broadband market. This order, which is expected to begin shipping in early fiscal 2027, represents approximately half of the company’s fiscal third-quarter sales from continuing operations.