Today, all of us have an insatiable appetite. We’re consuming data at an astonishing rate, and we seemingly can’t get enough. Streaming, Gaming, Work-from-home, 5G, Internet of Things (IoT), and edge computing applications are all on the rise, and that’s before we even introduce the elephant in the room: AI.
This exponential increase in data usage is driving a parallel surge in electrical consumption. The rise of AI is creating a particularly vicious cycle, where high-density computing requires exponentially more power per square meter for operation and cooling. Fortunately, fiber optics offer an important tool to achieve our data demand while reducing the environmental and financial impacts.
How fiber can reduce your electric bill
Fiber is the best and only long-term solution for sustainability, being more energy efficient, reliable and scalable than alternative technologies, regardless of where it is implemented on the network. Put side-by-side, XGS-PON uses substantially less energy per connection than legacy copper connections such as xDSL and cable, as well as modern 5G fixed-wireless connections, according to an Analysys Mason analysis.
In fact, a McKinsey & Company report estimates that telecommunications providers could reduce total energy costs by up to 30% through fiber deployment, decommissioning legacy copper network equipment, optimizing cooling systems, and using other measures such as digital twins for planning.
You don’t need to have a strong opinion on climate change to appreciate a better bottom line. Lower energy consumption means reduced carbon emissions and lower operational costs due to lower electric bills. The FTTH Council Europe makes the case in its “Full fiber for a digital and sustainable Europe” report, pointing out that FTTH networks generate less CO2 during the fiber production, have longer life spans and higher transmission capacity, and are much more efficient to deploy and operate. Power consumption for a fiber access network is six times lower than its cable counterpart and seven times lower than a VDSL2+ network.
Other advantages of optical fiber sustainability
A more streamlined network built with longer-life fiber also means fewer truck rolls thanks to improved reliability, points out a July 2024 study by the Fiber Broadband Association. Deploying new fiber networks also enables the recovery and recycling of legacy copper, with each ton of recycled copper leading to a 2.8-ton reduction in CO2 emissions and eliminating the additional environmental impacts from copper mining.
Inside the data center, fiber is already the go-to option for connecting servers, switches, racks, and locations. As hyperscalers and AI developers build greenfield facilities optimized for GPU density, fiber connectivity requirements within the building have increased ten- to twenty-fold. With the continued growth of AI applications, fiber remains the most economical and energy-efficient option for connecting buildings across a data center campus, connecting campuses across regions and borders for AI-to-AI traffic, and providing access between users and data centers.
By reducing power needs for access connectivity using all-fiber networks, it decreases the need for creating new power plants. Energy that was once used for network connectivity can now be applied to other areas. In the months and years to come, we can expect continued migration away from copper and toward fiber as network operators and data centers look to increase electrical availability without new power plant construction.
We haven’t yet reached the point where utilities are offering financial incentives for fiber migration, but those days are coming. For capital-constrained power providers looking to avoid building new generation facilities, such as electric cooperatives, today’s “cash for old appliances” programs may evolve into tomorrow’s fiber financing.
Ready to go green – or save green – using fiber optics? Tell Clearfield how we can help.
Clearfield’s Chief Commercial Officer, Anis Khemakhem, is deeply passionate about technology, particularly in advancing fiber optics and telecommunications solutions. Throughout his career, he has consistently focused on leveraging cutting-edge technology to improve connectivity and enhance digital access across various sectors. His executive experience - including leadership positions at Clearfield, Amphenol and Carlisle Interconnect Technologies - demonstrates his executive engagement capabilities and capacity to handle complex, multi-stakeholder projects.