AI data centers are seeing rapidly increasing demand for HPC and big data processing. The shift from traditional copper wiring to fiber optics boosts data transfer rates while lowering power consumption. Gallium arsenide (GaAs) epitaxy maker Visual Photonics Epitaxy Co. (VPEC) stated that while the smartphone market in 2026 is expected to remain flat or show slight growth, rising transmission efficiency requirements in AI data centers will drive planned equipment purchases and expanded capacity, making data centers the company’s main growth driver for 2026.