Evolution of Mega Datacenters into Metro-Regional Clusters Boosts Demand for DWDM Optics


LightCounting releases Mega Datacenter Optics report, which analyses impact of Cloud companies on the market for AOCs/EOMs, Ethernet and DWDM optics



Alibaba, Baidu and Tencent operate a distributed network of datacenters in many metro areas because of restrictions on building larger facilities in China. Mega datacenters operated by the Western Cloud companies are starting to transform into metro-regional clusters as their strategies evolve. Interconnecting these distributed facilities will require a lot of bandwidth. Detailed analysis of this emerging market is presented in the updated Mega Datacenter Optics report.

Amazon recently disclosed that it operates 25 datacenters interconnected with 3500 fibers in Ashburn, VA. Facebook expanded their mega datacenters by constructing new facilities in vicinity of the existing ones. Microsoft announced their intention to build more metro and regional datacenters to reduce the time required for planning new facilities.

Majority of these facilities will be interconnected with DWDM technology further expanding market opportunity for suppliers of Datacenter Interconnect (DCI) equipment to the Cloud companies. These customers will be among early adopters of 200G and 400G DWDM technology, as illustrated in the Figure below.

Will the Cloud companies take a step further and invest in building edge datacenters to reach closer to the end users?

Cisco recently introduced a new term: “Fog computing”, referring to adding compute and storage capabilities in facilities located closer to enterprises in order to facilitate migration of their private datacenters to the Cloud. Equinix and other colocation providers are doing robust business with enterprises customers migrating to the Cloud.

Cloud companies are also starting to use colocation datacenters to reach closer to the end user. Storing copies of popular videos (often referred to as caching) in local datacenters or the central offices of service providers was necessary to deal with the rapid growth of video on demand. New applications such as SnapChat and Instagram add an urgency to supporting these applications locally to ease the burden on long haul networks. Future applications like self-driving cars and other Internet of Things (IoT) novelties will have to rely on edge datacenters for low latency.

Edge-centric content distribution represents a disruption to the traditional geography of data centers which used to focus only on major markets with high urban populations and network exchanges. Mega Datacenter Optics report offers a detailed review of this transition.

This report also analyzes the impact of Mega Datacenters on the market for Ethernet optical transceivers, DWDM optics, Active Optical Cables (AOCs) and Embedded Optical Modules (EOMs).  It leverages extensive historical data on shipments of these products, combined with market analyst research, to make projections for the market in 2017-2022. The report offers a comprehensive forecast for more than 50 product categories, including 10GbE, 40GbE, 100GbE, 200GbE and 400GbE transceivers, sorted by reach and form factors. It provides historical shipments data and projections for 2.5G, 10G, 100G, 200G, 400G DWDM ports and several types of AOCs/EOMs.

More Information on the report is available at:





LightCounting is a leading optical communications market research company, offering semiannual market updates, forecasts, and state-of-the-industry reports based on its analysis of primary research with dozens of leading module, component, and system vendors as well as service providers and other users. LightCounting is the optical communications market’s first choice source for the accurate, detailed, and relevant information necessary for doing business in today’s highly competitive environment. For more information, visit: or follow us on Twitter at @LightCounting.