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The multi-year agreement highlights optical fiber as a critical constraint for scaling hyperscale AI clusters and future cloud infrastructure.
Meta has signed a $6 billion multi-year fiber supply deal with Corning, underscoring the growing role of networking infrastructure as a key constraint in scaling artificial intelligence data centers and AI data center networking. Announced in 2026 in the United States, the agreement reflects an industry-wide shift toward prioritizing optical fiber networks, as rising AI workloads place unprecedented strain on optical fiber infrastructure for AI and overall data center connectivity.
As part of the deal, Corning will supply Meta with optical fiber, cable, and advanced connectivity solutions to support the rapid expansion of next-generation data centers. Meta said the partnership will help accelerate infrastructure development needed to support its applications, platforms, and long-term AI roadmap. The agreement also highlights the challenges that hyperscalers face as they deploy massive AI clusters which generate heavy east-west traffic within and between data centers, thereby increasing demand for hyperscale data center networking, high-speed data center networking, and scalable fiber infrastructure.
“While GPUs, power, and cooling have traditionally been understood as necessary constraints for data center scaling, fiber, which was once a commodity, is now a strategic asset,” said Shriya Mehrotra, director analyst at Gartner. Manish Rawat, semiconductor analyst at TechInsights, noted that optical fiber is emerging as a structural limitation on AI infrastructure due to the need to tightly synchronize thousands of processors across complex network architectures. Greyhound Research chief analyst Sanchit Vir Gogia said the so-called “networking wall” reflects overlapping challenges involving fiber supply, switching density, optical transceivers, and data center network design.
The deal comes as fiber is no longer viewed as abundant or inexpensive. Large-scale AI deployments, combined with government broadband expansion initiatives, are intensifying competition for network resources and extending deployment timelines for enterprises.
By securing a long-term fiber supply, Meta is following a strategy similar to its earlier investments in custom silicon and power contracts. As AI data center expansion continues, networking architecture, fiber availability, and scalable data center interconnects are expected to become decisive factors shaping the future of cloud networking infrastructure.
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