As demand for artificial intelligence, ubiquitous cloud computing, and other emerging data-intensive applications continues to surge, the need for larger and more energy-efficient data centers has become increasingly critical. Meeting this demand requires a leap in infrastructure— and Lumentum is at the forefront of this leap with its various next-generation photonic technologies and products.
 

The Need for Next-Generation Data Centers

Traditional data centers are struggling to keep up with the exponential growth in data traffic and compute workloads. AI/ML training and inferencing already require massive bandwidth density and low-latency interconnects, and those requirements are expected to grow exponentially. At the same time, total power consumption and scalability are becoming critical concerns. Lumentum, a global leader in optical networking and photonic solutions, is addressing these challenges with innovations designed to transform the AI infrastructure ecosystem.
 

Indium-Phosphide Photonics Solutions

At the core of Lumentum’s innovation lies our advanced indium phosphide (InP) platform, enabling ultra-high-speed optical links—up to 200 Gbps per lane today and expected to scale to higher rates in the near future. Lumentum’s energy-efficient InP technology underpins pluggable optical transceivers operating at 400 Gbps, 800 Gbps, 1.6 Tbps, and beyond, across back-end and front-end intra-data center, as well as data center interconnect (DCI) coherent applications. These solutions are essential for scaling today’s AI infrastructure that powers everything from large language models to real-time data analytics.
Looking ahead, one of the most exciting developments on the horizon is the move toward co-packaged optics (CPO). The concept of CPO is to integrate optical connectivity in the same package as the host IC (GPU, CPU, Ethernet switch or any other ASIC). This integration brings the ability to support very high bandwidth density links (e.g., multiple Terabit per second per fiber) with very low power consumption over extended distances, enabling larger AI compute clusters spanning multiple equipment racks. Although its initial applications will be for AI scale-out networks, this innovation is key to supporting the next generation of AI accelerator scale-up, given that today’s copper connectivity and traditional pluggable optics are expected to fall short due to their limited reach and high power consumption, respectively. Lumentum is well positioned to be a leader in the emerging CPO ecosystem, with our ultra-high power (UHP) laser suitable for external laser source (ELS) pluggable modules,  as well as other more fully integrated multi-Terabit per second connectivity solutions on our roadmap.

Figure 1 shows a possible configuration of a system implementing CPO-based optical connectivity. The host IC (e.g., a GPU or CPU) is co-packaged with a silicon photonics (SiPh)-based optical engine that performs the optical Tx and Rx functions. The light source used to provide such Tx function comes from a UHP laser inside a pluggable ELS module in the front plate of the system chassis, simplifying thermal management and replaceability.
 

Optical Circuit Switch (OCS): A Game-Changer for AI Infrastructure

Lumentum’s R300 Optical Circuit Switch (OCS) is another breakthrough product designed for the AI ecosystem. Built on our industry-leading MEMS technology, the R300 enables dynamic, low-latency optical switching between thousands of endpoints. Unlike traditional Ethernet-based architectures, which are power-hungry and less scalable, OCS offers a more energy efficient and flexible alternative.
The R300 OCS shown in Figure 2 supports up to 300x300 ports with a typical insertion loss of 1.5 dB, and can scale to support 100,000+ GPU clusters, making it ideal for hyperscale AI deployments. It also reduces power consumption by up to 65% compared to conventional switching fabrics—an essential advantage as data centers strive to meet sustainability goals.

Real-World Impact and Industry Momentum

Lumentum’s innovations are already showing their impact across the industry. At OFC 2025, we showcased a live demonstration of our InP electro-absorption modulated lasers (EMLs) running at 448 Gbps, paving the way for 3.2 Tbps optical connectivity, as well as our R300 OCS product – both of which drew strong interest from hyperscale cloud service providers and others in the AI ecosystem. These technologies are not just theoretical—they are expected to be adopted soon in real-world deployments to enable the next generation of data centers. Market analysts predict very rapid growth in demand for optical interconnects and circuit switching as AI continues to scale (see Figures 3 and 4). 
Lumentum is well-positioned to advance this transformation with its robust portfolio and deep expertise in photonics, based on decades of innovation and market leadership.

Conclusion

As the digital world accelerates its transformation, data centers must evolve to keep pace. Lumentum’s Cloud and Networking solutions—ranging from high-speed lasers, photonic chips, and pluggable transceivers, to scalable optical switching and CPO—provide a path to a more energy-efficient and sustainable future.

To learn more about how Lumentum is shaping the future of AI infrastructure, visit www.lumentum.com.   

^{*Source: LightCounting, “Optics for Cloud Data Centers”, July 2025
**Source: LightCounting, “Ethernet, InfiniBand and Optical Switches for Cloud Data Centers”, April 2025}