As 2025 approaches, the networking technology landscape has reached a pivotal moment, shaped by the rising demand for fiber, rapid AI adoption, and growing complexity. This blog dives into insights from Zayo experts on key trends shaping the future, including universal broadband expansion, automation and service excellence, and the transformative impact of AI usage on network evolution.
1. Avoiding a fiber shortage will require innovation and collaboration
Meeting increased fiber demand will require industry-wide collaboration, proactive investments in modernizing networks, and improved permitting processes to accelerate fiber buildouts. Zayo’s experts share ways the telecom industry can address fiber scarcity to ensure scalable, reliable infrastructure for AI-driven systems.
Bill Long, Chief Product & Strategy Officer: “There is barely enough network bandwidth today to meet the current wave of AI demand. With land and power already scarce for AI data centers, fiber connectivity could become the next limited resource in 2025 and beyond.
We’ve seen fiber demand from our own customers surge 12-18x for AI deployments, with current demand focused on training and expected to grow even more for inferencing.
To avoid an impending fiber shortage, the industry must collaborate on solutions to meet demand—just as it did with chips and data centers. Addressing this shortage will require proactive investments from infrastructure providers in building and modernizing networks to support this demand to improved permitting processes to accelerate fiber buildouts.”
Shawn Edwards, SVP, Chief Security Officer: “Fiber scarcity will continue to be a pressing issue in 2025, requiring industry players to rethink how they maximize existing infrastructure. I foresee more creative solutions, such as shared networks and the use of hybrid fiber technologies. Network automation, on the other hand, will evolve into improved reactive and perhaps even proactive, self-healing systems, drastically reducing downtime and improving service delivery.”
Aaron Werely, Vice President, Technology: “Fiber scarcity is real. There is in some ways a bit of a land grab going on for fiber and network capacity, potentially boxing out competitors from access to fiber where it is known that overbuilding will be cost-prohibitive and time-intensive. Network automation is critical to scale and maintain the data needed to support future demand. It’s always been needed, but it will soon be table stakes.”
2. The AI boom will drive a growing need for specialized network expertise and robust infrastructure
Zayo experts anticipate continued AI growth in 2025 to drive demand for networking expertise and infrastructure. Companies will rely on increased external support from managed service providers to future-proof their networks and keep up with rapidly changing technologies.
James Tomko, SVP, Strategic Sales: “In 2025, AI will really start to hit the edge in a more material way. I think more companies are going to start looking at it and saying, ‘I need help. This is not my expertise; this is not my core competency.’”
Bill Long, Chief Product & Strategy Officer: “I’m involved in a lot of the AI conversations and the companies that were prepared for the unpredictable at the infrastructure level are the ones that I’ve seen be able to thrive. Being prepared for the unpredictable as the world just seems to be moving faster and faster continues to be a really good practice regardless of what’s coming at you. I don’t see the world slowing down anytime soon.”
Joel Daly, SVP Government Affairs and Product Strategy: “Driven by massive demand of AI training use cases, massive investment in data centers continues, and it takes nearly three years to build. We have seen early orders in 2024, however as these data centers near operational readiness – will see continued growth for network infrastructure in 2025.”
3. Network providers need to deliver service excellence and invest in automation to meet customer needs
Zayo predicts a surge in network automation, enabling faster innovation, efficiency, and support for AI and multi-cloud growth. Service excellence and proactive investment will be key for network providers to meet rising customer demands for seamless, scalable, and high-performing solutions.
Bill Long, Chief Product & Strategy Officer: “2025 will be a turning point as enterprises shift from traditional static networks to agile, on-demand, software-driven solutions. As enterprise environments grow more complex, managing connectivity across core, cloud, and edge locations has become increasingly challenging. Diverse locations, rising costs, and performance hurdles demand a fresh approach to networking.
Enterprises need a seamless, end-to-end self-service experience, where automated network provisioning and real-time observability simplify operations and accelerate outcomes.
In response, Zayo predicts a sharp rise in Network-as-a-Service (NaaS) adoption across bandwidth-intensive industries like healthcare, finance, and technology. By embracing NaaS, enterprises can unlock faster innovation, improved operational efficiency, and a future-ready network built to support AI and multi-cloud growth.”
Nikos Katinakis, Chief Technology Officer: “In this high-stakes environment, networking providers will need to coordinate more closely with customers to understand needs, anticipate where demand will be, invest in the network ahead of that demand, and improve systems and processes to rapidly meet customer needs. I believe only the infrastructure providers who ‘over invest’ today and put networks in place proactively will be able to deliver the service excellence demanded in terms of delivery and assurance.”
Shawn Edwards, SVP, Chief Security Officer: “I believe that in 2025, we will see the network infrastructure industry have a significant shift towards autonomous network management driven by AI. This will not only optimize performance but also enhance security and resilience against emerging threats. At Zayo, our focus will be on evaluating, adopting, and scaling these technologies to streamline network operations, increase agility, and reduce manual interventions.”
4. There will be a continued focus on expanding universal broadband access
Expanding fiber network infrastructure in 2025 is key to bridging the digital divide and enabling data center expansion in rural areas. With over $300 million in government funding, Zayo is building critical middle mile infrastructure enabling last-mile connections in unserved and underserved communities.
Bill Long, Chief Product & Strategy Officer: “In 2025, there will be a continued — and intensified — focus on expanding universal broadband access. These initiatives are crucial to ensure all Americans can participate in the digital economy and support the long-term economic growth of communities nationwide. Moreover, these initiatives will be integral to AI advancement, as the move of AI data centers to rural areas (where space and power are more available), will necessitate broadband access in these previously underserved regions.”
Mark Allen, Program Manager, Government Stimulus and Product Strategy: “Some examples of what we might see in 2025 are public partners like municipalities. Cities and counties are already leveraging specialized consulting groups to better align with carriers before the BEAD funding is released. Local communities know their needs best, so they’re developing strategic plans on how to meet those needs.”
5. Data center development will follow available power
As data center power consumption is expected to grow 160% by 2030, hyperscalers are securing data center land near power plants in secondary markets in places like Iowa and Oregon to meet AI-driven demands. We can expect to see available power drive data center expansion to new and emerging locations in 2025.
Aaron Werley, Vice President, Technology: “Hyperscalers buying data center land near power generation plants is no coincidence. Access to power is quickly becoming the most critical thing to solve to support the demands AI will drive.”
Joel Daly, SVP Government Affairs and Product Strategy: “The amount of fiber demand in the last 12 months has distinctly changed. This means historically, consumption models are not as relative as determining where new demand is going to be. Everything is driven by where data is processed. Data centers are going where the power is available. Companies like Zayo need to connect what is next and what is next is where there is power.”
2025 will be a key year for the telecom and networking industry, driven by continued AI growth, increasing fiber demand, and evolving customer needs. Addressing these challenges will require proactive investments, industry-wide collaboration, and innovative approaches to network automation, broadband expansion, and infrastructure development. As a trusted partner, Zayo is uniquely positioned to help businesses navigate these shifts, offering expertise, cutting-edge solutions, and a commitment to building scalable, reliable networks.