Cogent Communications' CEO forecasts a resurgence in global internet traffic driven by artificial intelligence, even as pricing pressures persist in the data infrastructure sector. The shift may bolster demand for cloud and network services across tech giants like Apple and energy-adjacent data operations.
- AI-related data traffic accounted for 38% of Cogent's Q4 2025 network growth
- Core internet traffic rose 14% year-over-year despite infrastructure price compression
- Average revenue per megabit declined 7.2% in 2025, reflecting persistent margin pressure
- Data center power consumption forecasts increased 18% for 2026
- CBOE Volatility Index (^VIX) rose 12% in early March amid infrastructure demand concerns
- Crude oil futures (CL=F) gained 2.1% on heightened energy demand from AI-driven data centers
Cogent Communications' CEO has signaled that artificial intelligence is poised to reinvigorate global internet traffic, reversing years of stagnation amid entrenched price compression in communication infrastructure. The CEO cited rising AI model training and inference workloads as key drivers, noting that data-intensive applications are generating unprecedented bandwidth needs across enterprise and consumer platforms. Despite ongoing margin pressure in the sector, the renewed demand could reshape investment priorities in fiber networks and data center capacity. Specifically, the company reported a 14% year-over-year increase in core network traffic during Q4 2025, with AI-related data flows accounting for nearly 38% of the total growth. This surge coincides with a broader trend of cloud providers expanding edge computing deployments to support real-time AI services. For firms such as Apple (AAPL), which relies heavily on scalable infrastructure for its AI-integrated devices and cloud offerings, this shift underscores the importance of resilient, high-speed connectivity. The implications extend beyond pure data volume. As network utilization climbs, pricing models are under strain—Cogent’s average revenue per megabit dropped 7.2% in 2025 despite the traffic increase. This compression reflects a competitive environment where providers are forced to lower rates to retain enterprise clients. Yet, the sustained demand from AI workloads may eventually allow for premium pricing on high-performance routes, particularly those serving data centers in key markets like Northern Virginia and Singapore. Market participants are already adjusting: the CBOE Volatility Index (^VIX) saw a 12% spike in early March as investors priced in sector volatility tied to infrastructure capacity constraints. Energy markets also reacted, with crude oil futures (CL=F) rising 2.1% as data center power consumption forecasts increased by 18% for 2026. The interplay between AI demand, infrastructure economics, and energy costs signals a pivotal inflection point for the technology and communications sectors.