Copper cable PCIe interfaces have primarily been used for connecting DACs and PCBs. However, as the demand for higher data rates grows, the limitations of copper—especially regarding electrical loss—are becoming more pronounced. Optical links present a compelling alternative, boasting superior bandwidth density that aligns well with modern needs.

One of the key advantages of optical technology is its ability to facilitate access to different server and memory units within a rack. This feature enables systems to bypass traditional memory constraints, promoting resource sharing and concentration through solutions like CXL switches.

Moreover, optical links demonstrate exceptional performance over longer distances, maintaining energy efficiency and cost-effectiveness. The lower loss rates of optical links compared to electrical alternatives result in fewer necessary retimers and signal conditioners, which translates to lower operational costs. Utilizing cost-effective and high-yield optical components further enhances this economic advantage.

While copper interconnections can dominate space within data centers, their bulkiness makes them less ideal for high-density setups. In contrast, optical fibers are more compact and flexible, facilitating the creation of denser data center configurations.