“Rising Adoption of Co-Packaged Optics in Data Centers”
• Co-packaged optics is emerging as a transformative innovation by integrating optical engines directly with switch ASICs, reducing electrical signal loss and improving overall energy efficiency in high-speed data center environments. This approach supports compact and high-density designs, allowing data centers to keep pace with bandwidth-intensive applications and increasing interconnect demands without compromising performance or space. As data center architectures evolve to support next-gen speeds, the momentum behind CPO continues to accelerate among major cloud operators and equipment vendors
• One of the primary benefits of co-packaged optics is its ability to overcome limitations of traditional pluggable modules, such as excessive power consumption, higher latency, and cooling inefficiencies in dense setups. CPO enables direct optical integration, reducing the electrical path and simplifying signal transmission across shorter distances, which is critical for enabling seamless 800G and 1.6T interconnects. This technological leap addresses the future needs of hyperscale data centers focused on low-latency, high-throughput operations
• Major semiconductor and network technology providers, including Intel and Broadcom, have already begun introducing CPO-enabled prototypes and defining commercial product roadmaps. These developments indicate significant industry commitment toward co-packaged optics, pushing it closer to widespread commercialization. With growing demand for higher speeds, lower power, and improved thermal performance, CPO adoption is likely to become mainstream in next-generation data center deployments within the coming years
• Collaborative initiatives such as the Open Compute Project (OCP) are playing a crucial role in advancing CPO by establishing technical standards and fostering ecosystem-wide collaboration. These efforts lower barriers to entry, encourage innovation, and help cloud and enterprise customers adopt CPO-based infrastructure more efficiently. As standardized interfaces and interoperable designs mature, broader market participation is expected to fuel faster growth and diversification in the CPO landscape
• For instance, in 2023, Broadcom unveiled its Tomahawk 5 switch chip with native support for co-packaged optics, targeting hyperscale cloud environments seeking performance scalability. Similarly, Intel demonstrated a working 1.6T CPO engine, showcasing the feasibility of this integration at terabit-level bandwidths. These examples underscore the increasing traction and investment in CPO as a future-proof optical transceiver solution
