TL;DR
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The cost of fiber-optic cable has surged due to increased military use in conflicts like Ukraine and supply chain pressures from data center expansion. Prices have nearly doubled in recent months, affecting both military and commercial sectors.
Fiber-optic cable prices have surged sharply in 2026, driven by escalating military use in conflicts such as Ukraine and increased demand from data centers expanding AI infrastructure, according to industry sources and military reports.
Since 2023, the cost of fiber-optic cable has nearly doubled, with a key supplier, Sun Telecom, reporting a rise from $2.20 per kilometer in 2024 to $4.10 in early 2026. Ukrainian soldiers and military analysts confirm that fiber-optic cables are now significantly more expensive and less accessible for military applications, such as drone control.
This increase is partly due to heightened demand from data centers, as companies rush to build out infrastructure for artificial intelligence and cloud computing. Corning CEO Wendell Weeks told CNBC that hyperscalers are expected to become the largest customers for fiber-optic cables in the coming year. Meanwhile, geopolitical conflicts in Ukraine, Iran, and Africa have further strained supply chains, with Russia and Ukraine consuming 50-60 million kilometers annually, mostly sourced from China, where prices have risen from $2.33 to $5.83 per km in 2026.
Why It Matters
This development impacts both military and commercial sectors. For militaries, the rising cost and scarcity of fiber-optic cables threaten the viability of fiber-controlled drones, which are immune to electronic jamming and have been used in recent conflicts. For the broader economy, supply shortages could delay data center expansion and AI deployment, potentially slowing technological progress and increasing infrastructure costs globally.
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Background
Initially, fiber-optic cables were a low-cost solution for military drone control, notably used in Ukraine and by other conflict zones since 2023. The demand from these war efforts coincided with a surge in data center construction driven by AI and cloud computing, creating a perfect storm of demand. The destruction of Ukraine’s domestic fiber manufacturing capacity in 2025, and reliance on Chinese imports, have further complicated supply chains. The price hike reflects these combined pressures, with industry insiders warning of a ‘fiber famine’ 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 remains unclear how long fiber prices will continue to rise and whether supply chain disruptions will ease in the near future. The full impact of these costs on military tactics and global infrastructure development is still unfolding, and alternative solutions are under development but not yet widely deployed.
high capacity data center fiber optic cable
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What’s Next
Industry experts anticipate further price increases and supply shortages through 2026. Military and commercial sectors are likely to accelerate efforts to develop autonomous drone control and alternative materials, while governments and companies may seek to diversify supply sources to mitigate risks.
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Key Questions
How much has the price of fiber-optic cable increased recently?
The price has nearly doubled in recent months, with a typical cost rising from around $2.20 per km in 2025 to over $4.10 in early 2026, and some estimates reaching $5.83 per km.
Why are fiber-optic cables so important for military drones?
Fiber-optic cables provide a fast, immune-to-jamming connection between drones and operators, making them crucial for covert and long-distance control in conflict zones.
What factors are driving the increase in fiber-optic cable costs?
Demand from data centers expanding AI infrastructure, military use in conflicts like Ukraine, and supply chain disruptions, especially reliance on Chinese manufacturing, are key drivers.
Are there alternatives to fiber-optic control for drones?
Yes, some military forces are turning to satellite-based and Starlink communications, which are currently more cost-effective for certain applications, but these alternatives have limitations in range and susceptibility to jamming.
What is the outlook for fiber supply and prices in 2026?
Industry sources warn of ongoing shortages and rising prices, with some predicting a ‘fiber famine’ that could impact military operations and infrastructure projects for the foreseeable future.
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