12 Key Insights from Metro Connect 2025: Navigating Power, AI, and Infrastructure

Another year, another packed-out Metro Connect: here are 12 themes and insights to emerge.

Infrastructure and Power Challenges

Power distribution and industrial shortages

Digital Bridge CEO Marc Ganzi’s Metro Connect keynote packs the room every year. After extolling AI potential in 2024, this year Ganzi chose to focus on the risk of insufficient power reaching the areas data centres will be built.

“We have a power distribution and transmission problem,” he told the delegates, focusing specifically on the issue of moving the power to where it is needed – actual generation is less of an issue.

While sounding an optimistic note in general, Ganzi also focused on other potential roadblocks for data centre buildout, one being a shortage of key industrial equipment to actually build the facilities. “If you decide to go build a data centre tomorrow and head to Germany to order turbines from Siemens, they’ll tell you, ‘See you in 2029,’” he said. “This is one of the biggest problems we have.”

Read more: Marc Ganzi: ‘Power, not GPUs, is our biggest challenge’

Fibre up, tower down

TD Cowen's State of the Market session, delivered this time by Gregory Williams, is another regular fixture at Metro Connect, and this year it was a tale of two sectors.

On one hand, the fibre sector is booming. End user connectivity and nationwide coverage rates are both increasing, with up to 10 million homes being passed by the end of the year. AI and data centre connectivity demands are driving extra fibre mileage, as is demand from wireless carriers.

The tower sector, on the other hand, is struggling. Tower stocks fell 21% in 2024 after an additional drop of 20% in 2023. This is due to stubbornly high interest rates, a decline in international tower deals, and a general rethinking of high investments in consumer 5G services.

Read more: Metro Connect 2025: Fibre frenzy takes centre stage as tower sector falters

Market Demands and Technological Evolution

The gap for mid-range power

While meeting AI need is important, there is a gap in the US market in the 10 – 50 MW range. Demand in this tranche is being driven by clients like universities and healthcare providers, for whom security and reliability of data hosting is more important than cloud-based flexibility.

Is bandwidth growth maxing out?

A common theme from various speakers was that for fixed line connections, consumers and providers are approaching the point of ‘enough’ – who needs a 10 Gbps connection? It is now more important to deliver connection to more people with more redundancy and added value, such as home automation.

How AI can combat fraud

Alianza has developed an AI agent to combat the issue of telco fraud, which costs up to $25bn in the US alone. The AI agent detects likely patterns of scammer behaviour, allowing calls to be blocked or rerouted before they reach vulnerable consumers.

Natural gas for data centre power

GPC Infrastructure’s CEO Jim Summers discussed the potential of on-site gas generation as a long-term alternative to grid power. However, questions remain regarding whether investors—particularly those focused on ESG requirements—will accept this on a large scale.

The Human Element and Operational Strategy

The acute talent shortage

Lots of capital is coming into digital infrastructure, but not enough people are. Companies are focusing on upskilling existing employees and looking to adjacent industries like renewables. Additionally, firms are debating the efficacy of office mandates; if employees are just sitting on Teams calls all day, they may question the need for physical collaboration.

Read more: Metro Connect 2025: Addressing the digital infrastructure skills gap

FTTH growth and competition

FTTH operators are moving at full pace, but they face increasing competition from traditional telcos and cable companies. Lazard’s Garrett Baker estimated the US is only around halfway through its overall fibre deployment.

Read more: Metro Connect 2025: FTTH operators tackle growth, competition & convergence

Scaling an ISP: Slow is smooth

Scaling too fast can lead to service bottlenecks. The consensus was that any big change—including acquisitions or adding MVNO services—must align with the company's long-term goals. "Slow means smooth, and smooth means fast."

Finance and Regulation

Data centre and fibre financing

On the fibre side, consolidation is expected in a fragmented market. On the data centre side, new funding sources like private credit and asset-backed securities are flowing into the sector, with $25bn capital raises becoming likely.

BEAD and federal funding

The fate of the $42bn BEAD program is currently in a "wait and see" phase following the change of administration. Many states have providers ready to break ground, but progress is stalled pending final budget approvals.