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Global Data Center Expansion Fuels Demand for 400G+ Optical Gear
2026-01-07 10:48:28

The global data center landscape is undergoing a transformative surge, driven by explosive growth in AI applications, high-frequency trading, edge computing, and cloud services. Hyperscalers such as Amazon, Google, and Microsoft, alongside rising regional players in Asia and the EU, are aggressively scaling their infrastructure to support next-gen workloads.
As demand intensifies for higher throughput, lower latency, and energy-efficient interconnects, optical transceivers rated at 400G and beyond are emerging as critical building blocks for modern data center architecture.

In Southeast Asia, countries like Vietnam, Singapore, and Malaysia are witnessing record-setting investment in colocation and hyperscale facilities. According to regional telecom data, Southeast Asia's rack capacity is projected to grow over 25% year-over-year in 2026, driven by a combination of government incentives, digital transformation efforts, and proximity to emerging AI compute zones.
Meanwhile, in Europe, cross-border DCI (data center interconnect) builds are pushing the need for 400G LR4 and ZR+ optics capable of supporting longer distances with precision tuning.

This surge is placing immense pressure on the optical supply chain - particularly for 400G QSFP-DD SR8/LR4, 800G OSFP, and coherent pluggables. Vendors and integrators are racing to secure reliable sources of NDAA-compliant, thermally efficient, and high-yield transceivers.
Ascent Communication Technology, with its advanced manufacturing footprint in Vietnam and product lines, is well-positioned to serve global cables, telco operators and infrastructure builders needing scalable, cost-effective optical connectivity.

Looking ahead, AI-driven workloads, particularly for large model training and edge inferencing, will further accelerate the transition to 800G and beyond. Pluggable optics must not only keep pace with speed requirements but also meet stricter power and thermal constraints imposed by next-generation servers and switches.
Ascent is actively expanding its production capacity and product portfolio to support this shift - ensuring that global customers are equipped with the optical solutions necessary to build the backbone of tomorrow's digital economy.


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