Organizations That Treat Networks as an AI Afterthought Will Struggle to Keep Pace, New Zayo Report Finds

Zayo, the leading global digital infrastructure provider, today released its second-annual Bandwidth Report, analyzing bandwidth consumption trends across nearly 6,000 customers throughout 2025. The report found that organizations are rapidly increasing investment in high-capacity networks as AI fundamentally reshapes network planning, including how much capacity is needed, where that capacity must be deployed, and how networks must be designed to connect data centers, GPU clusters, cloud regions, and end users across an increasingly distributed AI ecosystem. The findings point to a clear divide: organizations investing ahead of AI demand are building the capacity to scale, while those relying on networks designed for traditional workloads risk turning connectivity into a constraint.

“AI is exposing a hard truth: networks built for yesterday’s traffic patterns will not support tomorrow’s workloads,” said Bill Long, Chief Product & Strategy Officer at Zayo. “The organizations set up to capture AI’s value are investing now in the bandwidth, fiber, and architecture required to scale. They understand that the next decade of competitive advantage will depend on network infrastructure that is built for AI.”

Key Findings:

  • Record demand signals a permanent reset in network planning: Bandwidth investments in 2025 maintained the record-breaking pace set in 2024, following the widespread adoption of AI. Investments in Wavelengths and Metro Dark Fiber remain consistently high as customers look to capitalize on AI’s potential with more robust infrastructure.

  • Demand for Metro Dark Fiber spiked in areas with AI-driven growth as inferencing requires data processing closer to the end user: Metro Dark Fiber demand increased by up to 20 times in some top AI-driven metros as AI deployments shift from training to inference and require data to be processed closer to the end user.

  • Larger, more distributed workloads spurred Long-Haul Dark Fiber demand: Between 2024 and 2025, demand for Long Haul Dark Fiber doubled as Zayo’s largest customers expanded connectivity between AI data centers to support significantly larger AI workloads.

  • AI and digital transformation initiatives put pressure on enterprises’ existing network infrastructure: Wavelength capacity purchases increased 2.6X amongst data centers, 3.2X amongst media & internet providers and 2.3X amongst financial institutions.

  • The largest AI players are already moving on infrastructure investment: Sustained high investments solidified hyperscalers and carriers as the largest buyers of long-haul fiber, accounting for 95% of all purchases. AI infrastructure providers and neoclouds are emerging as major buyers of high-capacity network solutions as AI workloads scale, increasing demand for connectivity between data centers, GPU clusters, and cloud regions.

Why Maximizing AI’s Potential Depends on the Network

As organizations scale their AI usage, network capacity is becoming as critical as compute. This growing interdependence reflects a broader convergence of digital intelligence and physical infrastructure: as AI expands what organizations can achieve with data, the network provides the foundation required to realize that potential at scale. Companies that continue relying on infrastructure designed for traditional workloads risk limiting AI performance, slowing deployment, and increasing operating costs. Meanwhile, organizations investing now are building the foundation needed to support increasingly distributed AI workloads over the next decade.

To deliver these infrastructure needs for customers, Zayo is expanding ahead of demand. The company has infrastructure developments spanning more than 15,000 route miles of long-haul fiber across North America, making it one of the only providers actively investing in delivering new fiber infrastructure in the critical corridors where AI demand is emerging. Zayo also has bolstered its metro footprint to support AI’s move from training to inferencing through the acquisition of Crown Castle’s Fiber Solutions business, adding approximately 90,000 route miles and 40,000 on-net enterprise locations to its network. These investments reflect where AI infrastructure demand is headed, not just where it exists today, and provide the digital infrastructure backbone for organizations to scale their AI initiatives.

For more on the shifting network requirements and record-breaking demand growth, view the full report: https://www.zayo.com/info/the-zayo-bandwidth-report/

About Zayo

The world’s digital future depends on networks that perform. Zayo builds and operates those networks. As the largest independent digital infrastructure provider, the Zayo network spans 32 million fiber miles and 224,000 route miles across North America and connects more than 400 markets globally. With dense long-haul and metro fiber connectivity, tailored connectivity solutions, and managed services, Zayo’s network underpins the cloud, AI, and enterprise platforms powering the digital economy. Carriers, cloud providers, data centers, enterprises, schools, and governments rely on Zayo’s future-ready infrastructure and expertise to design, scale, and operate networks that connect what’s next. Discover more at www.zayo.com and follow us on LinkedIn.

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