Unlocking the Potential of Data Centers and Fiber Optics
- Yoann Hispa
- Dec 9, 2025
- 5 min read
In the rapid race to build out the world’s AI infrastructure, the physical location of a data center is no longer just about cheap power and flat land. Today, the value of a parcel is increasingly dictated by what lies beneath the soil: high-capacity fiber optics. For the modern data center developer, a site without a clear path to multi-terabit connectivity isn't just a challenge- it’s a liability.
Data Centers and Fiber Optics in the US
Data centers house computer systems and components like telecommunications and storage systems. They are essential for storing, processing, and distributing vast amounts of data. Businesses, government agencies, and service providers depend on data centers to run applications, manage data, and support online activities. With the rise of cloud computing, big data, and the Internet of Things (IoT), data centers have become indispensable. Complementing data centers, fiber optics transmit data using light signals through thin strands of glass or plastic. They enable high-speed, high-capacity communication, crucial for modern internet and telecommunications infrastructure. Together, data centers and fiber optics support the vast and growing demands for data storage and transmission.
As of Q1 2026, the United States is home to around 4,000 data centers, with Northern Virginia, Dallas, and the Bay Area being the top locations. These facilities vary in size and capacity, from small edge data centers to large hyperscale facilities. White space in data centers refers to the portion of the physical layout available for future expansion of IT equipment. This space, not currently occupied by servers, racks, or other hardware, is crucial for scalability, allowing data centers to grow their capabilities and meet increasing demands without significant structural changes.
Complementing these data centers is an extensive network of fiber optic cables in the US. These high-speed, high-capacity cables transmit data using light, allowing for rapid and reliable communication between data centers and end-users. The integration of fiber optics with data centers ensures that large volumes of data can be transmitted quickly and efficiently, supporting real-time applications and services. This connectivity is essential for maintaining the performance and reliability of data centers, enabling seamless data flow and robust network infrastructure. Major cities like New York, Los Angeles, and Chicago serve as critical hubs for these networks, facilitating rapid and reliable data transmission across the country.
There are 3 main types of fiber networks; long-haul fiber networks, dark fiber networks, and regional/metro fiber networks.
Long-Haul Fiber: These are high-capacity fiber routes that connect cities, regions, or states, often running hundreds or thousands of miles. They typically follow highways, railroads, or utility corridors and are designed for ultra-high bandwidth and long distances and are mainly used by majority carriers and cloud providers.
Dark Fiber: Dark fiber lines are unused or 'unlit' fiber optic cables that have been installed but are not currently active. Buyers or lessees install their own equipment to 'light' the fiber, giving them full control over capacity, speed, and security. Dark fiber lines are most commonly used by hyperscalers and data centers.
Regional/Metro Fiber: These are fiber networks that operate within a metropolitan area or a broader region, connecting local endpoints. They generally connect data centers, office buildings, and cell towers and are used by ISPs, enterprises, municialities, and data centers.
The Impact of Data Centers & Fiber Optics on Land Values
For data center developers, the synergy between land and light is the difference between a high-value asset and a stranded one. As AI workloads demand unprecedented speeds, understanding the intersection of fiber proximity and parcel value is essential.
Latency and "Connected" Sites
Latency is the delay before a transfer of data begins following an instruction. While data travels at the speed of light, every mile of glass fiber adds microseconds of delay. For modern applications- from autonomous vehicles to high-frequency trading and real-time AI inference- every millisecond counts.
This creates a direct correlation: The closer a parcel is to major fiber backbones and internet exchange points (IXPs), the higher its market value. A "prime" data center site is no longer defined solely by its acreage. It is defined by its proximity to "long-haul" and "metro" fiber rings. When a developer can minimize the distance between the server and the fiber "on-ramp," they reduce the cost of trenching and ensure the site meets the stringent requirements of hyperscale tenants.
The rise of Generative AI has shifted the goalposts for what constitutes a "connected" site. Traditional enterprise data centers could often tolerate moderate latency, but the new generation of AI-driven facilities requires ultra-low latency and multi-terabit capacity.
Fiber Optic Proximity and Land Values
When evaluating a potential acquisition, developers must look at fiber through two lenses: Redundancy and Cost.
Reduced CapEx: If a parcel is adjacent to an existing fiber vault, the "last mile" connection costs are minimal. Conversely, if a developer has to build five miles of new fiber lateral to reach a backbone, the project costs can skyrocket by millions of dollars, potentially killing the deal's IRR.
Path Diversity: Value isn't just about one fiber line. True value lies in "diverse paths," meaning the land has access to multiple, physically separate fiber routes. This ensures that if one line is cut, the data center stays online. Sites with access to three or more unique fiber providers command a significant premium in the market.
Future Trends in Data Centers and Fiber Optics
The future of data centers and fiber optics is set for significant growth and innovation. As demand for data storage and processing increases, hyperscale data centers will become more prevalent, characterized by their massive scale and efficiency. Sustainability will also be a key trend, with data centers focusing on green energy solutions to reduce their carbon footprint, integrating renewable energy sources and advanced cooling technologies.
The global data center market is expected to grow from $48.9 billion in 2020 to $105.6 billion by 2026, driven by the demand for cloud services and digital transformation across industries. In the US, data center construction spending is projected to exceed $22 billion by 2025 whereas the revenue in the Data Center market is projected to reach $340.20 billion in 2024. The rise of 5G networks will boost data processing and transfer capabilities, supporting the growing number of connected devices. This will create new revenue streams and opportunities for stakeholders in the data center and fiber optics sectors, while also driving down costs through increased efficiency and scalability. Overall, these trends indicate robust growth and significant economic opportunities in the future of data centers and fiber optics.
How to Access Data Centers Details and Fiber Optic Maps
The challenge for developers has always been visibility. How do you know where the high-capacity fiber lines are located before you spend months on due diligence. LandGate makes this a reality by providing crucial details for over 3,500 data centers in the US like operator names, white space availability, and gross power capacity. And it doesn’t stop there- LandGate also offers comprehensive data on fiber optic networks, including 1.2 million miles of mapped fiber lines complete with operator information. LandGate's platform allows you to overlay fiber optic maps, substation locations, and power line capacity directly onto parcel-level data.
Ready to find your next high-performance data center site? Learn more about LandGate's tools for data center developers and book a free demo today:
