Telecom fiber overbuild (late 1990s)
Companies like Global Crossing and WorldCom borrowed heavily to lay fiber-optic cable, betting internet demand would fill it. Contracts and forecasts justified the spending. Much of the capacity sat unused.
Valuations soared, then collapsed when demand fell short and accounting problems surfaced.
Several giants went bankrupt, though the cheap fiber they left behind later powered the broadband era.
It is the cautionary case for compute deals financed on projected demand from customers who have not yet earned the revenue to pay.
