Nokia Develops Pluggable Optics to Reduce Power Consumption
Nokia Oyj is evolving pluggable optics technologies to address the increasing power demands of data centers driven by AI and surging bandwidth requirements.

Nokia Oyj is developing new approaches to reduce power consumption in pluggable optical modules, a critical step to meet the escalating bandwidth needs of data centers, largely fueled by artificial intelligence (AI) workloads.
The demand for bandwidth within data centers is projected to grow exponentially, with AI Ethernet networking potentially requiring 335 exabits per second by 2030. This surge in traffic strains not only bandwidth but also power and space resources. Data center electricity consumption is expected to more than double by 2030, highlighting the urgency for energy-efficient solutions.
For intra-data center connectivity, which typically spans less than 500 meters, there is a shift towards pluggable optics optimized for strict power and thermal constraints. Nokia is exploring designs that minimize SerDes loss, a key factor in power consumption where longer electrical signal paths require more energy. Technologies like Fully Retimed Optics (FRO) are effective for longer distances but consume more power.
Nokia is focusing on solutions like Linear Receive Optics (LRO) and Linear Pluggable Optics (LPO). LPO, in particular, removes internal retiming circuitry and pushes signal equalization and clock recovery to the host ASIC, significantly reducing module power consumption. This makes LPO suitable for high-density, short-reach links within data centers.
These advancements aim to reduce power consumption by as much as 70 percent while maintaining high capacity. The initiative addresses both operational cost efficiencies and the growing environmental concerns associated with the expanding digital infrastructure, ensuring a more sustainable path for future network growth.