Hyperscale Data Center Driving 400G Transceiver Demand

Introduction

Due to smartphones, media apps, security cameras, video streaming, smart cars, and the wide range of connected devices, data traffic is growing exponentially. Global data traffic will grow 3.2-fold from 2017 to 2022, reaching 396EB per month by 2022, up from 122EB per month in 2017, according to Cisco’s Visual Networking Index.

With the world increasingly going digital, data center traffic is expected to grow even more. A Hyperscale data center is a large data center used by Hyperscale cloud services providers, such as Amazon, Facebook, and Google. Hyperscale data centers provide the agility and efficiency needed to support Hyperscale cloud services. They are designed to be easily scalable and to meet the demanding requirements of Hyperscale cloud services providers.

Hyperscale data center is rapidly growing.

The hyperscale data center market will grow to USD129.16 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 25.37% during the forecast period, according to a new report by Technavio. The below table provides Hyperscale data center market growth statics:

Hyperscale data center market size (source: technavio)

What are the reasons for Hyperscale data center growth?

The Hyperscale data center market is growing due to the following three reasons:

Reason #1 – Increasing Data Center Colocation Facility Demand

As enterprise and cloud services providers look to expand their operations, they are turning to data center colocation facilities to house their servers and other IT equipment. Hyperscale data center colocation facilities offer the space, power, cooling, and connectivity needed to support large-scale operations.

The growth of Hyperscale data center colocation facilities is driven by the need for enterprises and cloud services providers to reduce their capital and operational expenses. Hyperscale data center colocation facilities offer the economies of scale needed to support large-scale operations.

Reason #2 – Increasing Demand for Video Streaming

The rising popularity of video streaming services, such as Netflix, Hulu, and Amazon Prime Video, drives the demand for Hyperscale data centers. Video streaming services require large amounts of bandwidth and storage. Hyperscale data centers are designed to meet the demanding requirements of video streaming services.

Reason #3 – Increasing Demand for Video Conferencing

As a result of COVID-19, more and more people start remote work at home. That is increasing video conferencing services like Zoom, Skype, and Google Meet. This has increased demand for Hyperscale Data Centers, which can handle high-volume and high-bandwidth applications such as video conferencing.

400G Transceiver Play a Vital Role in Hyperscale Data Centers

The heavily growing Hyperscale data center requests the higher data rate and density Ethernet transceiver to satisfy the ever-increasing demand for Hyperscale data center networks. The latest Ethernet standard, IEEE 802.3bs, supports data rates up to 400 Gbps. To keep these high data rates, Hyperscale data centers require 400G optical transceivers.

400G Ethernet transceivers are available in various form factors, such as 400G Transceivers, 400G DAC cables, and 400G AOC cables.

400G Transceivers

400G transceivers are used in Hyperscale data centers to support data rates up to 400 Gbps. 400G transceivers are available in various form factors, such as 400G QSFP-112, 400G QSFP-DD, and 400G OSFP.

400G DAC cable

For the very short-distance interconnectivity in Hyperscale Data Center, Hyperscale Data Center operators often utilize DAC cables. Direct attach copper cables (DACs) are low cost and have good electrical performance for Hyperscale Data Center applications. Hyperscale Data Center operators can select from a wide range of port speeds, including 40G, 100G, 200G, and 400G.

Similar to the 400G transceiver form factors, the 400G DAC cable also has various form factors. The most commonly used form factors in Hyperscale Data Center are the QSFP-DD and OSFP.

But for the longer-distance Hyperscale Data Center interconnectivity, Hyperscale Data Center operators must utilize AOC cables or transceivers.

400G AOC Cables

400G Active Optical Cable is used in Hyperscale Data Center for longer-distance connectivity, up to 100m length. 400G AOC provides the best ratio b/w the cost and performance for Hyperscale Data Center applications.

400G AOC is available in various form factors, such as QSFP-DD and OSFP.

Final Words

The Hyperscale data center plays a vital role in the current digital world. The Hyperscale data center demand drives the need for 400G transceivers, including 400G transceivers, DAC cables, and AOC cables. With the ever-growing Hyperscale data center, we can expect an increase in the demand for 400G transceivers shortly.

What’s your opinion? Do you think Hyperscale data centers will grow even more in the future? Does your organization have plans to utilize any 400G transceivers? Which 400G transceiver is your favorite? Let me know in the comments below.

Read more:

Optical Transceiver