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 prospects 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 max management and scalability.

This evaluation is customized 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 worldwide 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.

Nevertheless it’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 reside cloud areas in Europe, operators are planning to launch 12 new cloud areas beginning in 2026. 

Choose Proprietary and Cloud Area Information Middle Places in Europe

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

A Deeper Take a look at Capability Worth Decline

Rising demand spurs continued funding in community infrastructure, which may embrace fiber overbuilds, various path development, or infrastructure enlargement. And usually talking, when extra capability or provide turns into out there, this results in decrease unit prices, and finally, 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 more in-depth 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 biggest 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 latest applied sciences, like ZR+ pluggable optics and hollowcore fiber, rising inside Europe’s hubs. Connectivity prices are sometimes increased in Japanese 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 because of this. On the Frankfurt-London route, the weighted median 400 Gbps worth was simply 2.7 instances greater than the 100 Gbps worth, for 4 instances the capability. However worth multiples stay increased on subsea routes, similar 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 prices, 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 development throughout the Atlantic has been attributable to new cables similar 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.

Nevertheless it’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 simply 2%, compounded yearly over the previous three years.

Transferring eastward, the Europe-Asia route has struggled with capability provisioning, largely attributable to ongoing geopolitical points and submarine cable faults within the Crimson 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 triggered carriers to carry costs secure or report gross sales on the upper finish of the market vary. Consequently, the three yr CAGR decline on Marseille-Singapore’s 100 Gbps weighted median worth was a mere 2%. Luckily, we’ve seen unimaginable investments bypassing the Crimson Sea terrestrially, whether or not by Saudi Arabia avoiding the chokepoint within the Crimson Sea, or north by Iraq and Turkey avoiding the Crimson Sea altogether. With or with out cable faults, these different routes are particularly essential as hyperscalers are requiring as many as 4 or 5 various paths for resiliency. And even giant 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 different to a number of 100 or 400 Gbps wavelengths for these requiring large bandwidths. It affords most management, scalability, and safety because it gives the very best degree of bodily separation from different customers. Nevertheless, this comes with important drawbacks, together with a excessive upfront value 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 advanced, various considerably based mostly on elements like route competitors—with decrease charges discovered on aggressive Western European routes—geography, buy quantity, and even the client’s negotiation ability. Regardless of the enchantment of darkish fiber, some high-capacity prospects nonetheless go for lit capability, as wavelengths stay aggressive and cheap in Europe, providing patrons each value effectivity and ease in administration. 

In the end, the shift to increased capability companies highlights the business’s dynamic vitality and suggests an adaptable market poised for transformation, pushed by relentless demand and a give attention to various, resilient community paths.

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