Data centers are entering a new phase of infrastructure upgrades in 2026, feeding off generative AI under Nvidia's leadership. While silicon photonics (SiPh) and co-packaged optics (CPO) technologies are still in the deployment stage, the optical communications industry expects these technologies to make significant commercial inroads this year.
According to Yole Group's latest report, the silicon photonics industry is entering a period of rapid growth and diversification. With artificial intelligence continuing to drive exponential growth in bandwidth demand, the industry is transitioning to higher data rates, with 200G per lane links expected to become mainstream in 2026/27, paving the way for 800G and 1600G transceivers.
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