HKT deploys 3.2Tbps hollow-core fiber for ultra-low latency AI clusters
HKT is deploying a 3.2Tbps data center interconnect using hollow-core fiber technology in Hong Kong to achieve a 30 percent reduction in latency. However, industry analysts indicate that prohibitive costs and low manufacturing yields will likely restrict this technology to niche AI and financial applications until at least 2030.
Key Takeaways
- Hollow-core fiber costs remain high at $3,000-$5,000 per kilometer, with cost parity unlikely before 2036.
- Manufacturing yields for hollow-core fiber sit at roughly 10%, significantly trailing standard fiber production rates.
- HKT’s 3.2Tbps upgrade from its 800Gbps service links the Lok Ma Chau Loop and Tseung Kwan O data center hubs.
- The 206.5km field trial by China Telecom and YOFC achieved 51.3Tbps capacity without signal regeneration.
Why It Matters
The deployment highlights a critical bottleneck in the AI infrastructure cycle: the physical limits of glass-core fiber. By routing light through air, hollow-core technology offers the 30% latency reduction essential for real-time GPU cluster synchronization. However, the $5,000/km price tag and bespoke ecosystem mean only hyperscalers and state-backed telcos can currently justify the capex. For the broader streaming ecosystem, this indicates that while ultra-low latency backbones are technically feasible, the high cost of entry will delay mainstream CDN and edge computing adoption for years. Watch for the emergence of ITU-T common standards to signal the transition from bespoke trials to mass-market availability.
Additional Context
The race for hollow-core dominance is currently led by hyperscalers and Chinese state-owned entities. Per Nature Photonics and Network World in September 2025, Microsoft achieved a record-low operational loss of 0.091 dB/km over a 1,200 km live production link for Azure. Microsoft CEO Satya Nadella announced plans at the 2024 Ignite conference to deploy 15,000 km of hollow-core fiber over two years, supported by strategic manufacturing partnerships with Corning and Heraeus Covantics. This aggressive rollout aims to bridge the gap between physically distant data centers while maintaining the high-speed synchronization required for massive LLM training runs.
In the Asia-Pacific region, Chinese operators are pursuing long-haul records. In June 2026, China Telecom, YOFC, and Dekoli reported a world-record 51.3 Tbps transmission over 206.5 km without signal repeaters, using only standard erbium-doped fiber amplifiers. Per Business Research Insights in June 2026, the global hollow-core fiber market is projected to reach $9.26 billion by 2035, growing at a CAGR of 11.4%. However, standard terrestrial fibers still dominate on cost, priced at approximately $3-$4 per kilometer in large Chinese contracts as of 2025, according to CRU Group data.
Read full article at rcrwireless.com
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