India, June 18 -- TrendForce's recent research on silicon photonics (SiPh) shows that the rapid growth of AI training and inference workloads is pushing AI data centers toward increased power use, higher rack densities, and larger clusters.

As data transfer becomes a major energy drain, CSPs are treating interconnect technologies as equally important as compute hardware. The architecture of interconnects now plays a key strategic role in determining AI factory growth, energy efficiency, and supply chain management.

Consequently, TrendForce predicts that the markets for co-packaged optics (CPO) and near-packaged optics (NPO) will expand significantly, from around US$100 million in 2025 to over $39 billion by 2030.

CSPs accelerate NPO ec...