Data Center Interconnection DCI

What is DCI?

High-speed data center interconnection (DCI) technology is a key infrastructure in the current era of cloud computing, artificial intelligence (AI) and big data. It can connect multiple data centers and make high speed, low latency and safe data transmission possible.

DCI adavantages

DCI technology is used to connect two or more data centers, providing high-speed and reliable data transmission, and supporting enterprises to achieve data synchronization, disaster recovery, multi-cloud interconnection and other needs.

High speed and low latency: Supports 400G/800G and even 1.6T optical modules to meet the ultra-high bandwidth requirements of AI computing clusters.
Business continuity: Ensure disaster recovery and high business availability through cross-regional data replication.
Security: Use encrypted transmission protocols to prevent data leakage and network attacks.
Cost optimization: Compared with dedicated line leasing, self-built DCI is more cost-effective in long-term operations.

DCI market growth

The global DCI market is expected to reach $26 billion by 2036, with a compound annual growth rate (CAGR) of about 14% from 2024 to 2036.

In 2025, the output value of DCI related industries will be expected to exceed $40 billion, a year-on-year growth of 14.3%.

The North American market dominates (35% in 2023), but China is growing rapidly under the “East Data West Computing” policy.

Key technology trends

Ultra-high-speed optical modules: 400G has matured commercial use, 800G has become the mainstream of DCI, and 1.6T has entered the testing phase.

HGTECH launched 800G ZR/ZR+ coherent optical modules, supporting 120km relay-free transmission.

Microsoft and Lumen collaborate to deploy DCI networks, which greatly drive 800G demand and related fiber optic products.

Silicon photonics and CPO technology: reduce power consumption, improve integration, and are suitable for future 1.6T optical modules.

All-optical networking: using OXC (optical cross-connect) and SDN technology to achieve low latency and high bandwidth optical layer direct access.

AI-driven intelligent operation and maintenance: combining AI and digital twin technology to optimize network management and fault prediction.

Main application

AI computing cluster interconnection: Large AI training clusters (such as 1 million cards) need to be interconnected across data centers, and DCI becomes the key.
Multi-cloud hybrid cloud architecture: Enterprises connect public clouds and private clouds through DCI to achieve hybrid cloud deployment.
Edge computing and core data center interconnection: support low-latency data processing, such as autonomous driving and real-time video analysis.

Industry dynamics and manufacturer layout

Microsoft and Lumen cooperate: expand AI network capacity and promote 800G DCI deployment.

Huawei CloudDCI: Provide 400G high-speed interconnection and intelligent operation and maintenance to support enterprise cloud transformation.
Dr. Peng DCI: Based on SDN technology, it provides high-availability and elastically scheduled data center interconnection services.
Optical module manufacturers: Zhongji Xuchuan, HGTECH, Xinyi Sheng, etc. accelerate the development of 800G/1.6T products.

Future Outlook

AI drives DCI demand explosion: OpenAI and other large model training require larger computing power clusters, which promotes DCI network upgrades.

Coherent optical modules sink: Traditional long-distance coherent optical modules used for telecommunications (such as 800G ZR) are entering the data center interconnection market.

Global competition landscape: Chinese manufacturers (such as Huawei, ZTE, and Optical Network Technology) have international competitiveness in DCI technology and market.

High-speed interconnection DCI is the core technology supporting future AI, cloud computing and digital transformation. With the popularization of 800G/1.6T optical modules and the growth of AI computing power demand, the DCI market will continue to develop rapidly.