European Bandwidth Market: Present Snapshot

Europe is experiencing a surge in capability demand with a crucial want to attach quite a few knowledge facilities. Consequently, bigger clients are shifting to increased capability companies, particularly 400 Gbps and darkish fiber.

Learn on to discover how Europe’s connectivity market is adapting to fulfill unprecedented bandwidth wants. We dive into the implications of excessive bandwidth demand for wholesale pricing in Europe, together with:

• The shifting economics of capability, together with the adoption of 400 Gbps wavelengths and falling worth multiples.
• Challenges on crucial intercontinental routes, particularly Trans-Atlantic and Europe-Asia.
• The rising function of darkish fiber as an alternative choice to wavelengths for optimum management and scalability.

This evaluation is tailored from our newest Bandwidth Pricing Report, which is on the market to subscribers of the Wavelengths Pricing knowledge in our Community Pricing Database. 

Content material Suppliers and Cloud Areas in Europe

Europe performs a crucial function as a world interconnection hub, fueling bandwidth demand and requiring various and resilient community paths. From enterprises upgrading their worldwide networks to web suppliers enhancing their core backbones, we’re seeing shifts to increased capability connectivity throughout verticals.

But it surely’s really the content material suppliers main the surge in bandwidth demand. Practically 80% of all worldwide bandwidth deployed in Europe is utilized by content material suppliers, together with main cloud service suppliers. Along with the 57 stay cloud areas in Europe, operators are planning to launch 12 new cloud areas beginning in 2026. 

Choose Proprietary and Cloud Area Knowledge Heart Places in Europe

Demand is more and more pushed by intense wants to attach knowledge facilities. And with world funding in AI and GPU infrastructure hovering, Europe is eager to remain within the AI race with a deal with sovereignty, moral improvement, and strategic implementation. To maintain tempo with demand on all fronts, bigger clients usually are not solely shifting to 400 Gbps, however to Nx400 Gbps and darkish fiber.

A Deeper Have a look at Capability Worth Decline

Rising demand spurs continued funding in community infrastructure, which may embody fiber overbuilds, various path building, or infrastructure growth. And usually talking, when extra capability or provide turns into out there, this results in decrease unit prices, and in the end, decrease costs for purchasers. So it’s no shock that long run worth erosion stays the norm. However competitors and regional variations create nuanced dynamics on particular person routes, although. Let’s take a better look beneath at worth factors from TeleGeography’s Wavelengths Pricing Database. 

Weighted Median 100 Gbps Wavelength Costs & CAGR Worth Decline on European Routes

Core FLAP routes have immense capability necessities as they join the most important enterprise hubs in Europe, and so they additionally see extra competitors. In Q3 2025, the 100 Gbps weighted median on Frankfurt-London was $1,150 with a modest decline of 8%, compounded yearly over the previous three years. This low worth can be a mirrored image of recent applied sciences, like ZR+ pluggable optics and hollowcore fiber, rising inside Europe’s hubs. Connectivity prices are sometimes increased in Jap Europe, as demonstrated by Frankfurt-Sofia’s excessive weighted median worth. Extra carriers are increasing outward to Sofia as it’s proving to be a pivotal interconnection level between Central Europe, Central Asia, and the Center East.

As bandwidth demand continues to extend, suppliers report that 400 Gbps wavelengths are starting to take up a higher proportion of capability gross sales throughout Europe. Worth multiples between 100 Gbps and 400 Gbps companies have fallen in consequence. On the Frankfurt-London route, the weighted median 400 Gbps worth was simply 2.7 occasions greater than the 100 Gbps worth, for 4 occasions the capability. However worth multiples stay increased on subsea routes, corresponding to London-New York at 3.8. There are further infrastructure and gear improve prices when transitioning to 400 Gbps, however the financial savings on set up, cross join costs, and energy consumption could make up for that over time. 

Navigating Intercontinental Challenges

Increased worth multiples haven’t slowed down demand for higher bandwidths. Skyrocketing progress throughout the Atlantic has been as a consequence of new cables corresponding to MAREA, Havfrue, Dunant, and Grace Hopper. These programs provide diversified landings on the European facet spanning from Scandinavia right down to Portugal, and supply higher resilience than prior to now.

But it surely’s crucial to think about that 93% of Trans-Atlantic capability is deployed by content material suppliers and isn’t available within the wholesale market. Latest conversations have hinted at a looming capability crunch on the horizon. Understandably, our knowledge exhibits that 100 Gbps erosion on London-New York slowed to only 2%, compounded yearly over the previous three years.

Shifting eastward, the Europe-Asia route has struggled with capability provisioning, largely as a consequence of ongoing geopolitical points and submarine cable faults within the Pink Sea. To make issues worse, there are indefinite delays on desperately wanted new high-capacity cables. The mix of unsure provide and excessive demand has precipitated carriers to carry costs steady or report gross sales on the upper finish of the market vary. In consequence, the three 12 months CAGR decline on Marseille-Singapore’s 100 Gbps weighted median worth was a mere 2%. Luckily, we’ve seen unbelievable investments bypassing the Pink Sea terrestrially, whether or not via Saudi Arabia avoiding the chokepoint within the Pink Sea, or north via Iraq and Turkey avoiding the Pink Sea altogether. With or with out cable faults, these various routes are particularly essential as hyperscalers are requiring as many as 4 or 5 various paths for resiliency. And even massive enterprises are prepared to pay extra for this variety.

Darkish Fiber’s Illuminating Position in European Connectivity

The rising want for final scalability and management is driving the elevated visibility of darkish fiber in Europe. Primarily adopted by hyperscalers, darkish fiber is an unlit fiber optical cable that may be a savvy various to a number of 100 or 400 Gbps wavelengths for these requiring huge bandwidths. It affords most management, scalability, and safety because it supplies the best degree of bodily separation from different customers. Nonetheless, this comes with vital drawbacks, together with a excessive upfront price for optical transmission gear and the operational burden of community design, upkeep, and troubleshooting—all requiring in-house technical experience. 

Moreover, darkish fiber pricing is complicated, various considerably based mostly on elements like route competitors—with decrease charges discovered on aggressive Western European routes—geography, buy quantity, and even the shopper’s negotiation talent. Regardless of the enchantment of darkish fiber, some high-capacity clients nonetheless go for lit capability, as wavelengths stay aggressive and cheap in Europe, providing consumers each price effectivity and ease in administration. 

In the end, the shift to increased capability companies highlights the trade’s dynamic power and suggests an adaptable market poised for transformation, pushed by relentless demand and a deal with various, resilient community paths.

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