When AI infrastructure planners stand before a whiteboard to map out the network topology of the next-generation data center, what they face is not a single scenario but a multi-layered interconnect challenge: intra-rack connections from GPUs to switches, backbone interconnects from leaf switches to spine switches, and then data center interconnect (DCI) spanning tens of kilometers across buildings or even across campuses. Each layer has its unique speed requirements, distance ranges, and power consumption constraints, yet each layer must work in concert under a unified network architecture.
The scale expansion of AI clusters is simultaneously pushing the demand for all three of these scenarios to new heights. According to industry research, taking a 100,000-XPU cluster as an example, approximately 500,000 optical modules are required; a million-XPU cluster would need around 10 million modules, with the optical module-to-XPU ratio reaching 1:5 to 1:10. At the same time, the demand for optical interconnects in scale-up networks can be five to ten times that of traditional scale-out networks. Driven by this architectural evolution, the market size for Ethernet optical modules (100G and above) and CPO is projected to grow 65% year-over-year in 2026 and will exceed $50 billion by 2031.
Intra-rack connections typically rely on short-reach multimode fiber solutions, such as 800G SR8 optical modules, with transmission distances within 100 meters, where power consumption and cost are the primary considerations. Backbone connections between switches require mid-reach solutions like 800G DR8 or FR4, covering distances from 500 meters to 2 kilometers, demanding more stringent signal integrity and bit error rate performance. The DCI scenario introduces the need for coherent optical modules — 800G and 1.6T ZR/ZR+ coherent modules supporting long-distance transmission of 80 to 120 kilometers, providing high-bandwidth interconnect channels for cross-campus AI clusters.
This demand structure characterized by the coexistence of multiple scenarios poses a practical challenge for North American data center procurement teams: if different suppliers are chosen for different scenarios, it not only increases the complexity of supplier management but may also lead to multi-vendor coordination difficulties during interoperability validation and fault troubleshooting. A supplier capable of providing full-scenario, full-rate, and full-distance optical module solutions is increasingly becoming the preferred choice for more and more data center operators.
This is precisely the core differentiating advantage of HaloWill's product strategy. Our optical module product portfolio spans the complete speed range from 400G to 1.6T, supports mainstream OSFP and QSFP-DD form factors, and provides full distance coverage from SR (100 meters) and DR/FR (500 meters to 2 kilometers) to ZR/ZR+ (80 kilometers and beyond). Whether you need to procure short-reach multimode modules for intra-rack GPU cluster interconnects or deploy coherent optical modules for cross-campus DCI links, HaloWill delivers rigorously validated, consistent product solutions. More importantly, all HaloWill products comply with IEEE 802.3 standards and MSA multi-source agreements, with firmware supporting the CMIS 5.x management interface, ensuring seamless integration within third-party network equipment.
Amid the wave of AI infrastructure construction, HaloWill is committed to becoming the most reliable optical interconnect partner for North American customers. We provide not only modules but a full lifecycle of services ranging from selection consulting and interoperability testing to post-sales technical support. We welcome procurement teams, system integrators, and resellers across North America to connect with us and explore full-scenario optical interconnect solutions for the AI era together.
