AI Drives Surge in US Bandwidth Demand as Hyperscalers and Datacentres Expand Metro Networks

US Bandwidth Demand Hits New Highs Driven by AI Growth

As artificial intelligence (AI) becomes central to business innovation, the need for higher-capacity bandwidth is surging. Recent research from Zayo reveals a sharp rise in purchases of wavelength and dark fibre, with 400G wavelengths leading the way.

The study analyzed bandwidth purchasing trends from 2020 to 2024 among over 1,800 North American customers using dark fibre, wavelengths, and network connectivity products. It also surveyed 16 decision-makers from large enterprises on their bandwidth requirements.

Massive Growth in Wavelength Capacity and Dark Fibre

Wavelength capacity purchases nearly tripled, increasing 2.8 times between 2020 and 2024. Metro dark fibre acquisitions jumped 268% in the same period, while long-haul dark fibre saw a 52.6% year-over-year rise from 2023 to 2024. By 2024, 400G wavelengths made up the largest share of terabits purchased, significantly outpacing traditional 10G and 100G options.

Hyperscalers and Carriers Dominate High-Capacity Infrastructure

Large companies, especially hyperscalers and carriers, are the primary consumers of high-capacity bandwidth. From 2020 to 2024, these firms accounted for over 91% of metro dark fibre purchases and nearly 67% of wavelength deals exceeding 1Tb capacity. Notably, the number of deals over 1Tb more than doubled, driven by repeat buyers who increased their average purchases from 11 deals in 2020 to 15 in 2024.

In fact, just 10 buyers— all hyperscalers or carriers— accounted for nearly 62% of all wavelength capacity in 2024.

Industry-Specific Bandwidth Needs

• Hyperscalers, carriers, and tech companies: Investing heavily in bandwidth to support cloud services, datacentres, and emerging technologies.
• Manufacturing: Growth driven by Industry 4.0 initiatives, including real-time analytics, IoT, and AI applications.
• Media, finance, hospitality: Increasing capacity to meet rising bandwidth demands.

AI stands out as the main driver behind the surge in bandwidth purchases. Its workload demands have led to record numbers of large-scale wavelength and fibre investments, primarily by hyperscalers and tech firms.

Changing Purchase Priorities with AI Adoption

As AI integration grows, enterprises are focusing on scalability, hybrid cloud optimization, and security for sensitive workloads. Balancing cost with performance remains a key consideration.

Sector Growth Highlights

• Manufacturing: 364% increase in wavelength capacity from 1.88Tb to 8.71Tb (2020–2024).
• Public sector: 261% growth to 1.96Tb.
• Datacentres: 326% rise, reaching 11.42Tb.
• Software and technology: The largest surge at 450%, totaling 52.15Tb.

Emerging Datacentre Markets Fuel Network Traffic Growth

New markets like Memphis and Salt Lake City are experiencing explosive network traffic growth. From 2023 to 2024, demand for long-haul routes and metro wavelength connectivity soared by 4,300% and 348%, respectively. This growth is attributed to affordable space and power availability, attracting significant investment.

For professionals seeking to stay ahead in AI and infrastructure trends, understanding these bandwidth shifts is essential. Exploring targeted training on AI applications and cloud infrastructure can provide valuable skills to navigate this evolving landscape. Check out Complete AI Training's latest courses for practical insights.