GEORGE ASHWIN THE AI-LED OVERHAUL
increase from the rates seen in 2024. This is not a problem limited to Germany. In fact, the International Energy Agency (IEA) believe that both AI-driven and non AI-driven data centres will likely use 80% more energy in 2026 than they were in 2022. While China and the United States will likely experience the most growth in energy consumption, Europe is not lagging too far behind. As such, initiatives aimed at meeting the increasing demand with renewable energy sources are well underway in the majority of EU Member States. There also remains some concerns over the safety of these data centres. As compute power grows, so too does the amount of sensitive data being stored and processed. If these data centres are breached by cyber criminals, it can lead to significant data loss and extravagant ransom demands.
themselves. This is especially true when it comes to AI-led data centres. Instead, they are working with system integrators who acquire and develop full turn-key solutions on their behalf. This means these integrators have carved out their own niche in an increasingly prosperous market, with a wide array of NEMs to choose from when it comes to developing these solutions. While this is a lucrative position to be in, they must also be careful to avoid agreements that tie their projects to specific NEMs; in fact, the most effective option in terms of cost and performance would be to utilise solutions from the whole ecosystem, and avoid unnecessary vendor lock-in. As a result, system integrators should be considering compatible optical transceivers if they are to unlock the full potential of their offerings. Some business - often smaller than their NEM counterparts - now offer optical components that deliver the same performance levels as typical market offerings, but with faster delivery times and greater support. The best of these alternative suppliers carry out 100% testing to guarantee their solutions will mirror a customer’s data flow before it is used in their data centre. This means operators can use transceivers tailored to their specific requirement, and implement it on a plug-and-play basis. Integrators evaluating the use of these solutions need not be concerned about potential warranty implications. The use of compatible components does not void service contracts, due to the Treaty of functioning of the European Union (TfEU), which protects businesses and their customers when alternative optical solutions are used. Any explicit or implicit warranty tie with a manufacturer would be considered an illegal action under Articles 101 and 102 of the TfEU. A similar legal standing is also ensured within the United Kingdom through the Competition Act of 1998, which forbids any agreements deemed ‘anti- competitive’ so that businesses within dominant market positions do not abuse their power. Both give operators and system integrators the opportunity to select the most applicable solution for their data centre infrastructure without fear of repercussion. NEXT-GENERATION OPTICAL SOLUTIONS This includes the 400G and 800G NEM alternative components developed to overcome the demands of hyperscale networks, and the new 1.6T components which deliver the ultra- fast speeds vital to managing intense AI workloads. The unique testing process offered by NEM alternative vendors can ease operators’ concerns over performance, since the optical products are tested in
customer environments to ensure both compliance and suitability. Their service also extends to supporting operators post-delivery, with many alternative optic suppliers offering customers round-the-clock access to support teams and engineers. By ensuring customer products are in working order and continue to meet requirements after the initial sale, the consistency and reliability of their transceivers can be maintained effectively. As data centres become increasingly localised, this service may prove invaluable to keep the infrastructure up and running in the wake of increased pressure. Using an alternative optic supplier can also empower operators to avoid unnecessary complications when building enhanced data centre infrastructure, and benefit from a compressed timeline from order to delivery. OVERCOMING PRESENT AND FUTURE CHALLENGES At this point, it is important to note than these new vendors do not see themselves as competitors to the established NEMs, and both certainly have a key role to play when it comes to supporting the AI-led overhauling of data centres. The key word is ‘compatible’: using a combination of NEM and alternative optical components is the best option for system integrators. As Europe accelerates towards becoming a global AI powerhouse, the scale and speed data centre infrastructure is already evolving is unprecedented. Rising energy demands, alongside regulatory complexity and the need for enhanced performance has placed enormous pressure on operators to build smarter, more efficient facilities. In this high-pressure environment, NEM alternative vendors are offering flexible, high-performance solutions that bypass vendor lock-ins and speed up deployment timelines.
OVERCOMING GROWING CONCERNS In expectation of these demands,
operators are increasingly migrating their workloads to the cloud at a rapid rate. The hope is that as more businesses make this transition, greater automation of basic tasks can take place, ensuring that existing resources can be maximised through data-driven insights. In turn, this should give operators greater capacity to handle the increasing workload. To reduce potential data loss and bottlenecks, operators are also transitioning from the large-scale facilities common today in favour of smaller, decentralised sites. By placing data centres closer to urban areas, essential resources can instead be hosted across multiple regions. Frankfurt is one such area, with many facilities situated along the Hanauer Landstrasse and Weismüllerstrasse due to the city’s close proximity to the Deutsche Commercial Internet Exchange (DE- CIX) – one of the world’s largest internet exchange points. Across Europe and beyond, the concerns related to handling data securely has also seen the rise of economic protectionism and data sovereignty. If data centres are decentralised and hosted in urban regions, then operators can prioritise the local storage and processing of data and better align with any relevant regulations linked to where these facilities are established. SETTING UP OPTIMAL FACILITIES When it comes to establishing these data centres however, we have also seen a new approach emerge. The rate these centres are being built means businesses no longer have the time to procure individual components from Network Equipment Manufacturers (NEMs) and assemble the infrastructure
George Ashwin, a UK Channel Director at AddOn Networks
www.opticalconnectionsnews.com
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ISSUE 42 | Q3 2025
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