Data Center Interconnect Market to Grow 14.3% in 2025, Driven by AI Demand, Reports TrendForce

The global Data Center Interconnect (DCI) market is projected to increase by 14.3% year-over-year in 2025, reaching a value exceeding US$40 billion, according to TrendForce. The growth is fueled by the expansion of data center infrastructure by telecom providers and cloud service providers (CSPs), as generative AI integration into daily life accelerates.
TrendForce explains that DCI technology facilitates high-speed data transmission between data centers over short to long distances, addressing the computational demands of AI data processing. Collaborations between optical communication equipment providers and telecom operators in regions like the US, Northern Europe, and Southeast Asia are driving DCI adoption. Ciena, a US-based company, leads DCI deployment, with telecom partners Telia, e&, and Arelion implementing its Wavelength Logic6 Extreme solution.
Nokia is expanding DCI efforts in markets such as Saudi Arabia and Vietnam. In Vietnam, Nokia collaborates with Viettel, using its PSE-6s optical engine for terabyte-level inter-city data transmission. Nokia is also promoting optical transceiver modules in telecom data centers, with speeds shifting from 400G to 800G and progressing toward 1.6T.
The rising DCI market value is increasing demand for advanced components, including 800G and 1.6T optical transceiver modules. The global DCI supply chain includes upst...