Delivering the connectivity that wholesalers require

In the next few years global demand for connectivity is set to skyrocket due to multiple factors:

• A doubling of the number of connected Internet of Things (IoT) devices by 2032 *¹
• An estimated additional 1.1 billion people around the world who will be online by 2029 ^*2
• An explosion in enterprise traffic to the cloud with more data-intensive workloads, enabling everything from the latest innovations in Fintech to finding the cure for cancer

To meet this growth, the total capacity of our global data centers based on the current pipeline is set to more than double from 33.6 GW to 78.4 GW *³.

But the main factor in driving the next wave of connectivity? AI.

Data from OMDIA predicts that the Exabytes we transfer per month to meet our global network traffic needs will more than triple between 2024 and 2030. More than half of that will be driven by new AI and AI-upgraded applications *⁴.

Connectivity challenges today and tomorrow

The next AI-driven chapter presents a new set of short and long-term challenges for Wholesalers.

Short term:

• Increasing capacity to meet demand and then achieving that relatively quickly
• Increased scalability and agility to meet AI’s potential fluctuations in traffic
• Ensuring there are a diverse number of routes between different endpoints to avoid the risks associated with traffic just passing through one country who can threaten disruption
• Complying with data sovereignty challenges from territory to territory about which data can be moved where

Longer term:

• Providing the security and resilience to guarantee high volumes of network traffic, in a highly volatile world where geo-political instability is the “new normal”
• Meeting sustainability and net zero commitments
• Supporting data centers in areas which have been established to meet AI’s high consumption of power, but where there isn’t the requisite connectivity

From 100GE to 400GE connectivity

So how do we meet these challenges?  Operators need to consider two key steps:

• First, expanding service capability from 100GE to 400GE
• Second, preparing for the next gen capacity already on the horizon

At Arelion, 90% of our European and US long-haul networks now support 400GE. We have over 250 Points-of-Presence (PoPs) offering 400GE, most of which are co-located with cloud access points from the major players.

Wavelengths is already the service of choice for high-capacity demand. Data from OMDIA suggests that within EMEA, 100% of Hyperscalers are using wavelengths, while over 80% of Telco’s using wavelengths outstrips the use of dark fibers (less than 60%) and Spectrum-as-a-Service (less than 30%) *⁵.

While currently 100GE remains the workhorse for most loads, there is a rapid growing demand for 400GE from both wholesalers and enterprises.

For wholesalers it means they can meet capacity demand. For enterprises, the reduced space and power that 400GE brings leads to improved sustainability and greater ROI.

The next gen capacity around the corner

But what is coming next? The connectivity required to support AI means we must be one step ahead. Recently we partnered with Ciena to deliver the world’s first successful field trial in achieving 1.6 terabits-per-second (Tb/s) wavelengths data transmission on a live network.

Deploying Ciena’s WaveLogic 6 Extreme (WL6e) 1.6Tb/s single carrier wavelength  over 470km between two PoPs on our North American network, is a significant milestone that paves the way for 800GE services to be available globally in 2025. This popular, high bandwidth route connecting a submarine landing station to Ashburn, the data center capital of the world, was the ideal link to demonstrate massive data volume transmission at the fastest speeds available today. This landmark will help Arelion (supported by Ciena) to meet the connectivity challenges that AI will inevitably throw at us.

Building your own fiber network

To increase the potential for higher traffic flows, some cloud providers have developed their own global fiber networks.

This is driving much of the current demand for subsea cabling. According to Ciena, there are currently 44 new subsea cables committed to be built which stretches to over 350,000 km. Of these new cable projects, 64% involve cloud providers, accounting for an incredible 74% of the proposed cable length.

But building your own fiber network comes with significant levels of cost, effort and risk:

• Issues sourcing fiber in some geographies can lead to project delays and rising costs
• Time to market can be lengthy – an issue with current demand so high
• The resources required to build and manage a fiber network can be eye-watering

The advantages of managed network services

Given the associated risk and cost, and the future connectivity requirements, more wholesalers are considering the merits of managed network solutions over the ‘DIY’ approach of building a dark fiber network themselves.

With demands for increased capacity growing daily and some now exceeding over 100Tb/s, a managed private fiber networks, or managed capacity, can be configured to support demands from a few hundred Gb/s to over 100Tb/s.

The power of partnerships

Whether working with managed network services or enabling breakthrough innovation in the Wavelengths space, successful partnerships are critical for meeting our future connectivity challenges.

There are key questions to consider in selecting the right service partner in the age of AI.

• Is your potential partner connected to the right places?  Regional coverage is important. Data centers processing AI workloads are emerging in locations that are cheaper and offer greater sustainability, including the Nordics, Canada and Iberia.
• How experienced is your partner in building and running customized network solutions? As AI demand put strain on the networks, flexible high capacity solutions that goes beyond individual wavelengths like MOFN (Managed Optical Fiber Network) might be a good option to cope with the demand. Experience in building advanced customized solutions enables bandwidth to be delivered quickly using the latest available technology.
• How experienced is your partner in network and computer orchestration? AI workloads place new demands on the network and those that can use intelligent automation and solutions to drive scalability and flexibility are key.
• How flexible are the solutions on offer? Innovation in AI will emphasise the need for highly flexible capacity options as demands change.

Supporting connectivity in the age of AI

Here at Arelion we’re excited about supporting the connectivity the world needs to drive AI innovation. Interested in partnering with us?  Read about our Wavelengths Services or get in touch.

Sources:

*1 Statista.com – IoT Connected Devices Worldwide

*2 Statista.com – Internet Users in the World

*3 Cushman & Wakefield, Global Data Center Market Comparison, 2024

*4 Omdia

*5 Omdia, The 400G Opportunity in EMEA, September 2023