Artificial Intelligence in Data Centre Operations

Report: 'UK risks losing billions in AI investment'

According to a new report published today from trade association TechUK, the Data Centre Alliance, Copper Consultancy, and law firm Charles Russell Speechlys, the UK risks losing out on billions in AI investment if it doesn’t take clear steps to unlock data centre development. The report, How to Make the UK an AI Leader, brings together reflections from some of the biggest data centre developers - as well as planners and construction, engineering, and legal professions - at a recent industry roundtable organised by Copper and Charles Russell Speechlys. The roundtable, and subsequent report, lay bare the challenges facing data centre development in the UK, and the impacts this could have on investment into UK plc. Key regulatory barriers – such as energy availability, energy cost, and planning complexity – were identified alongside low public awareness as the main issues hobbling development of data centres in the UK. Luisa Cardani, Head of Data Centre Programme at TechUK, says, “The insights in this report echo what TechUK and the sector have been advocating for a long time: the UK has the talent, the ambition, and the capability to lead in AI and digital infrastructure, but leadership is not guaranteed. It requires bold decisions, cross-sector collaboration, and a shared national vision.” Steve Hone, CEO at Data Centre Alliance, adds, “As [a] trade association representing the UK data centre digital sector, we were delighted to be invited to collaborate in the recent roundtable which has culminated in the creation of this report. "This timely report is an important contribution to the debate and hopefully will act as a catalyst for the action needed to ensure the UK’s digital infrastructure remains world leading.” The report notes how high energy prices are currently hindering the UK's global competitiveness in data centres and AI - actively dissuading investment in the UK. Given the resource-intensive nature of data centres, the report suggests that the industry needs the Government to intervene through targeted subsidies, reducing costs to match energy costs in rival regions like the US and Nordics. Concerns have also been raised with 'AI Growth Zones' being seen as a "silver bullet for the industry." Whilst, according to the report, the industry welcomes government support, the current planning framework is seen as "overly rigid" and "risks misalignment with actual demand and repeating past planning mistakes like Slough's unplanned growth." As a response, a new planning use class could allow for flexible, demand-led planning, which would be especially important in the fast-moving AI industry. Finally, public perception is seen as a critical non-regulatory issue for the sector to tackle, with half the UK’ s population not knowing what a data centre is. Such low awareness leaves the public open to misinformation and a fundamental lack of understanding as to why data centres are critical to a future economy. The report calls on the industry to engage more proactively on the needs case for data centres with the public, supported by the Government outlining why their development is critical to growth. Ronan Cloud, Director at Copper Consultancy, argues, “While Grey Belt reforms are beneficial, considerable planning inertia remains. Government should create a dedicated planning use class for data centres at once, distinct from broader industrial uses. "This tailored classification would increase planning approvals and accommodate future technological developments.” Kevin Gibbs, Senior Consultant at Charles Russell Speechlys, comments, “Whilst the Government’s AI Opportunities Action Plan commits £2 billion to AI Growth Zones to accelerate infrastructure delivery, there is much more that both the industry and Government can, and should, be doing. "To truly become an AI leader and unlock economic growth, the UK needs to make a clear and compelling case for data centres. It needs to act now to alleviate some of the barriers.”

Kioxia announces 245.76TB SSD for enterprise AI

Memory manufacturer Kioxia Europe has expanded its LC9 Series of enterprise solid-state drives (SSDs) with the launch of a 245.76TB model, available in both 2.5-inch and Enterprise and Datacentre Standard Form Factor (EDSFF) E3.L formats. According to the company, it is the first NVMe SSD of this capacity to be offered in these form factors. The new model adds to the previously announced 122.88TB SSD and is aimed at enterprise environments, particularly those handling generative AI workloads. These workloads require large-scale, high-speed storage with high energy efficiency to support training large language models (LLMs), creating embeddings and building vector databases used in retrieval-augmented generation (RAG). The LC9 Series is based on a 32-die stack of 2Tb BiCS FLASH QLC 3D flash memory, using Kioxia’s CBA (CMOS directly bonded to array) technology. This combination enables 8TB in a compact 154-ball grid array (BGA) package. The design leverages advancements in wafer processing, materials science, and wire bonding. The new drives are intended for use in data lakes and other large-scale data environments where high performance and storage density are essential. In such use cases, traditional hard disk drives (HDDs) can limit throughput and underutilise GPUs. By comparison, Kioxia says that each LC9 drive can deliver up to 245.76TB while reducing the need for multiple HDDs, lowering power consumption, improving cooling efficiency, and ultimately reducing total cost of ownership (TCO). Key specifications of the LC9 Series SSDs include: • Capacity up to 245.76TB in 2.5-inch and E3.L form factors • 122.88TB models also available in 2.5-inch and E3.S form factors • Designed to PCIe 5.0 (up to 128GT/s Gen5 single x4 or dual x2), NVMe 2.0, and NVMe-MI 1.2c specifications • Support for the Open Compute Project (OCP) Datacentre NVMe SSD specification v2.5 (partial compliance) • Flexible Data Placement (FDP) support to reduce write amplification and extend drive lifespan • Security options including SIE, SED, and FIPS SED • CNSA 2.0 signing algorithm, intended for future quantum security standards “We continue to drive innovation with the new Kioxia LC9 Series, providing cutting-edge technology that enables our data centre and hyperscaler customers to stay ahead,” claims Paul Rowan, Vice President and Chief Marketing Officer at Kioxia Europe. “The 32-die stack of 2Tb BiCS FLASH QLC 3D flash memory, coupled with our innovative CBA technology and the E3.L form factor within the LC9 Series SSDs, address their unique requirements of generative AI applications for speed, scale, and efficiency.” The LC9 Series SSDs are currently sampling to select customers and will be showcased at the Future of Memory and Storage 2025 conference, taking place from 5 to 7 August in Santa Clara, USA. For more from Kioxia, click here.

Cybersecurity teams pushing back against AI hype

Despite industry hype and pressure from business leaders to accelerate adoption, cybersecurity teams are reportedly taking a cautious approach to artificial intelligence (AI). This is according to a new survey from ISC2, a non-profit organisation that provides cybersecurity training and certifications. While AI is widely promoted as a game-changer for security operations, only a small proportion of practitioners have integrated these tools into their daily workflows, with many remaining hesitant due to concerns over privacy, oversight, and unintended risks. Many CISOs remain cautious about AI adoption, citing concerns around privacy, oversight, and the risks of moving too quickly. A recent survey of over 1,000 cybersecurity professionals found that just 30% of cybersecurity teams are currently using AI tools in their daily operations, while 42% are still evaluating their options. Only 10% said they have no plans to adopt AI at all. Adoption is most advanced in industrial sectors (38%), IT services (36%), and professional services (34%). Larger organisations with more than 10,000 employees are further ahead on the adoption curve, with 37% actively using AI tools. In contrast, smaller businesses - particularly those with fewer than 99 staff or between 500 and 2,499 employees - show the lowest uptake, with only 20% using AI. Among the smallest organisations, 23% say they have no plans to evaluate AI security tools at all. Andy Ward, SVP International at Absolute Security, comments, “The ISC2 research echoes what we’re hearing from CISOs globally. There’s real enthusiasm for the potential of AI in cybersecurity, but also a growing recognition that the risks are escalating just as fast. "Our research shows that over a third (34%) of CISOs have already banned certain AI tools like DeepSeek entirely, driven by fears of privacy breaches and loss of control. "AI offers huge promise to improve detection, speed up response times, and strengthen defences, but without robust strategies for cyber resilience and real-time visibility, organisations risk sleepwalking into deeper vulnerabilities. "As attackers leverage AI to reduce the gap between vulnerability and exploitation, our defences must evolve with equal urgency. Now is the time for security leaders to ensure their people, processes, and technologies are aligned, or risk being left dangerously exposed.” Arkadiy Ukolov, Co-Founder and CEO at Ulla Technology, adds, “It’s no surprise to see security professionals taking a measured, cautious approach to AI. While these tools bring undeniable efficiencies, privacy and control over sensitive data must come first. "Too many AI solutions today operate in ways that risk exposing confidential information through third-party platforms or unsecured systems. "For AI to be truly fit for purpose in cybersecurity, it must be built on privacy-first foundations, where data remains under the user’s control and is processed securely within an enclosed environment. Protecting sensitive information demands more than advanced tech alone, it requires ongoing staff awareness, training on AI use, and a robust infrastructure that doesn’t compromise security." Despite this caution, where AI has been implemented, the benefits are clear. 70% of those already using AI tools report positive impacts on their cybersecurity team’s overall effectiveness. Key areas of improvement include network monitoring and intrusion detection (60%), endpoint protection and response (56%), vulnerability management (50%), threat modelling (45%), and security testing (43%). Looking ahead, AI adoption is expected to have a mixed impact on hiring. Over half of cybersecurity professionals believe AI will reduce the need for entry-level roles by automating repetitive tasks. However, 31% anticipate that AI will create new opportunities for junior talent or demand new skill sets, helping to rebalance some of the projected reductions in headcount. Encouragingly, 44% said their hiring plans have not yet been affected, though the same proportion report that their organisations are actively reconsidering the skills and roles required to manage AI technologies.

Industry analysts urge data trust over AI hype

As organisations continue to increasingly embrace AI to unlock new operations, industry analysts - at the Gartner Data & Analytics Summit in Sydney - urged a critical reminder that without trustworthy data, even the most advanced AI systems can lead businesses astray. Amid rising interest in generative AI and autonomous agents, business leaders are being reminded that flashy AI capabilities are meaningless if built on unreliable data. According to information technology research and advisory company Gartner's 2024 survey, data quality and availability remain the biggest barriers to effective AI implementation. If the foundation is flawed, so is the intelligence built on top of it. While achieving perfect data governance is an admirable goal, it's often impractical in fast-moving business environments. Instead, analysts recommend implementing "trust models" that assess the reliability of data based on its origin, lineage, and level of curation. These models enable more nuanced, risk-aware decision-making and can prevent the misuse of data without stalling innovation. Richard Bovey, Chief for Data at AND Digital, comments, "Trust in data isn't just a technical challenge, it's deeply cultural and organisational. While advanced tools and trust models can help address the reliability of data, true confidence in data quality comes from clear ownership, clear practices, and company-wide commitment to transparency. "Too often, organisations are rushing into AI initiatives without fixing the basics. According to our research, 56% of businesses are implementing AI despite knowing their data may not be accurate in order to prevent from falling behind their competitors. "Businesses must consider taking a data and AI approach to their technical operations to build trust, cross-functional collaboration, and ongoing education. Only then can AI initiatives truly succeed." At the summit, autonomy was a central theme. AI systems may act independently in low-risk or time-sensitive situations, but full autonomy still raises concerns as, while users accept AI advice, they're still adjusting to autonomous AI decision-making. Stuart Harvey, CEO of Datactics, argues, "One of the biggest misconceptions we see is the belief that AI performance is purely a function of the model itself, when in reality, it all starts with data. Without well-governed, high-quality data, even the most sophisticated AI systems will produce inconsistent or misleading results. "Organisations often underestimate the foundational role of data management, but these aren't back-office tasks, they're strategic enablers of trustworthy AI and those businesses that rush into AI without addressing fragmented or unverified data sources put themselves at significant risk. Strong data foundations aren't just nice to have in today's technical landscape, they're essential for reliable, ethical, and scalable AI adoption." Gartner predicts that by 2027, 20% of business processes will be fully managed by autonomous analytics and these "perceptive" systems will move beyond dashboards, offering proactive, embedded insights. The company also believes that by 2030, AI agents will replace 30% of SaaS interfaces, turning apps into intelligent data platforms. To thrive, data leaders should thus prioritise trust, influence, and organisational impact, or risk being sidelined. For more from Gartner, click here.

'More than a third of UK businesses unprepared for AI risks'

Despite recognising artificial intelligence (AI) as a major threat, with nearly a third (30%) of UK organisations surveyed naming it among their top three risks, many remain significantly unprepared to manage AI risk. Recent research from CyXcel, a global cyber security consultancy, highlights a concerning gap: nearly a third (29%) of UK businesses surveyed have only just implemented their first AI risk strategy - and 31% don’t have any AI governance policy in place. This critical gap exposes organisations to substantial risks including data breaches, regulatory fines, reputational harm, and critical operational disruptions, especially as AI threats continue to grow and rapidly evolve. CyXcel’s research shows that nearly a fifth (18%) of UK and US companies surveyed are still not prepared for AI data poisoning, a type of cyberattack that targets the training datasets of AI and machine learning (ML) models, or for a deepfake or cloning security incident (16%). Responding to these mounting threats and geopolitical challenges, CyXcel has launched its Digital Risk Management (DRM) platform, which aims to provide businesses with insight into evolving AI risks across major sectors, regardless of business size or jurisdiction. The DRM seeks to help organisations identify risk and implement the right policies and governance to mitigate them. Megha Kumar, Chief Product Officer and Head of Geopolitical Risk at CyXcel, comments, “Organisations want to use AI but are worried about risks – especially as many do not have a policy and governance process in place. The CyXcel DRM provides clients across all sectors, especially those that have limited technological resources in house, with a robust tool to proactively manage digital risk and harness AI confidently and safely.” Edward Lewis, CEO of CyXcel, adds, “The cybersecurity regulatory landscape is rapidly evolving and becoming more complex, especially for multinational organisations. Governments worldwide are enhancing protections for critical infrastructure and sensitive data through legislation like the EU’s Cyber Resilience Act, which mandates security measures such as automatic updates and incident reporting. Similarly, new laws are likely to arrive in the UK next year which introduce mandatory ransomware reporting and stronger regulatory powers. With new standards and controls continually emerging, staying current is essential.”

'AI is the new oil—and data centres are the refineries'

With AI adoption reshaping global industries, Straightline Consulting’s Managing Director, Craig Eadie, shares his insights regarding how data centres are powering the GenAI revolution: "The age of AI is here. Generative artificial intelligence (GenAI) is rewriting the rulebook when it comes to everything from software development and call centre productivity to copywriting — boosting efficiency and, depending on who you ask, on track to raise the GDP of industrialised nations by 10-15% over the next decade. "The impact of AI will reshape the global economy over the coming years, consolidating value among the companies that successfully capitalise on this moment — and disrupting those that don’t. The 'arms race' to develop the next generation of AI technologies — like Google’s new Veo 3 video generation tool, released at the start of June, which is already making headlines for its ability to allow anyone willing to pay $249 per month to create hauntingly lifelike, realistic videos of everything from kittens playing to election fraud — is accelerating as well. AI has become the new oil: the global fuel for economic growth. Unlike oil, however, GenAI alone isn’t valuable. Rather, its power lies in the ability to apply GenAI models to data. That process, akin to refining crude into petroleum, happens in the data centre. "Productivity is far from the only thing GenAI is turbocharging. This rush to build, train, and operate new GenAI models is also accelerating the race to build the digital infrastructure that houses them. Goldman Sachs predicts that global power demand from data centres will increase 50% by 2027 and by as much as 165% by the end of the decade, largely driven by GenAI adoption. "As someone working in the data centre commissioning sector, it’s impossible to overstate the impact that GenAI is having, and will continue to have, on our industry. GenAI has exploded our predictions. It’s even bigger than anyone anticipated. The money, the scale, the speed — demand is growing even faster than the most optimistic projections pre-2023. By the end of 2025, almost half of all the power data centres consume globally could be used to power AI systems. "The data centre commissioning space we’re operating in today has transformed dramatically. On the construction and design side, huge changes, not just in how buildings are constructed, but in the technology inside those buildings, are reshaping how we commission them. "The battle to capitalise on the GenAI boom is a battle to overcome three challenges: access to power, materials, and talent. "GenAI requires an order of magnitude more power than traditional colocation or cloud workloads. As a result, there are serious concerns about power availability across Europe, especially in the UK. We can’t build the data centres we need to capitalise on the GenAI boom because there’s just not enough power. There are some encouraging signs that governments are taking this challenge seriously. For example, the UK government has responded by creating 'AI Growth Zones' to unlock investment in AI-enabled data centres by improving access to power and providing planning support in some areas of the country. The European Union’s AI Continent Plan also includes plans to build large-scale AI data and computing infrastructures, including at least 13 operational 'AI factories' by 2026 and up to five 'gigafactories' at some point after that. "However, power constraints and baroque planning and approvals processes threaten to undermine these efforts. Multiple data centre markets are already facing pushback from local councils and communities against new infrastructure because of their effect on power grids and local water supplies. Dublin and Amsterdam already stymied new builds even before the GenAI boom. This comes with risk, because AI engines can be built anywhere. GDPR means data must be housed in-country, but if Europe and the UK don’t move faster, large US AI firms will resort to building their massive centres stateside and deploy the tech across the Atlantic later. Once an AI engine is trained, it can run on less demanding infrastructure. We risk stifling the AI industry in Europe and the UK if we don’t start building faster and making more power available today. "The other key constraints are access to raw materials and components. Global supply chain challenges have spiked the cost of construction materials, and the lead times for data-centre-specific components like cooling equipment can be as much as six months, further complicating the process of building new infrastructure. "Access to talent is another pain point that threatens to slow the industry at a time when it should be speeding up. Commissioning is a vital part of the data centre design, construction, and approvals process, and our sector is facing a generational talent crisis. There isn’t enough young talent coming into the sector. That has to change across the board—not just in commissioning, but for project managers, consultants, everyone, everywhere. The pain point is particularly acute in commissioning, however, because of the sector’s relatively niche pipeline and stringent requirements. You can’t just walk in off the street and become a commissioning engineer. The field demands a solid background in either electrical or mechanical engineering or through a trade. Right now, the pipelines to produce the next generation of data centre commissioning professionals just isn’t producing the numbers of new hires the industry needs. "This obviously affects all data centre commissioning, not just AI. The scale of demand and speed at which the industry is moving means this risks becoming a serious pinch point not too far down the line. "Looking at the next few years, it’s impossible to say exactly where we’re headed, but it’s clear that, unless Europe and the UK can secure access to reliable, affordable energy, as well as clear the way for data centre approvals to move quickly, pain points like the industry talent shortage and rising materials costs (not to mention lead times) threaten to leave the region behind in the race to capture, refine, and capitalise on the new oil: GenAI."

EDGNEX announces $2.3 billion data centre in Jakarta

EDGNEX Data Centers by DAMAC, a global digital infrastructure company backed by a global conglomerate headquartered in Dubai, today announced the development of a 'next-generation,' AI-powered data centre in Jakarta, Indonesia - its second in the market. This project marks one of Southeast Asia’s largest AI-dedicated developments, with a future projected capacity of 144 MW and a total investment of $2.3 billion. Following the land acquisition completed in March 2025 by DAMAC, the site has entered early construction phases, with the facility’s phase one expected to be ready for service by December 2026. The Jakarta facility will deploy high-density AI racks and is hoped to be a factor in accelerating the country’s transition from an analogue base to an AI-powered digital economy. Indonesia remains a high-potential Southeast Asian market, yet faces digital infrastructure gaps, limited hyperscale readiness, and rising latency challenges. With AI adoption accelerating across sectors, this project seeks to respond to the nation’s growing demand for scalable, energy-efficient infrastructure. “This is our second project in Indonesia, and this development reinforces our commitment to bridging the digital divide in fast-growing markets across Southeast Asia (SEA), such as Indonesia,” says Hussain Sajwani, Founder of DAMAC Group. “We are proud to build what will become one of Southeast Asia’s most advanced, sustainable data centres to power the next wave of innovation and digital growth. The scale of AI workloads demands a new class of infrastructure. This project is part of our broader push across SEA, where we have committed over $3 billion in digital infrastructure investments to date.” The new facility will target a Power Usage Effectiveness (PUE) of 1.32, and builds on EDGNEX’s growing presence in Thailand, Malaysia, and other key SEA markets. In 2024, the company announced its first data centre in Indonesia, a planned 19.2 WM data centre to be built at MT Haryono in Jakarta. It aims to address the growing demand for cloud service providers, edge nodes, and potential artificial intelligence deployments. The first phase is scheduled for completion in the third quarter of 2026. The regional goal for Edgnex in SEA is 300+ MW of operational capacity by 2026. For more from EDGNEX, click here.

‘Businesses sleepwalking into cyber catastrophe’

Security leaders have warned that ‘businesses are sleepwalking into a cyber catastrophe’ due to the rapid adoption of AI tools, alongside lacking privacy and ethics controls, amid a wave of recent high-profile cyber-attacks and data leaks. Arkadiy Ukolov, Co-Founder and CEO of Ulla Technology, a global HR platform, cautioned that many businesses are putting their data at risk by rushing off to use third-party AI tools as the main system to streamline operations. The ongoing fallout from the M&S cyber-attack, alongside other major hits against Co-op, Dior, and Harrods, has highlighted the severity of data risks and how data is protected, forcing security teams to re-evaluate their protocols. Speaking from the Viva Technology event in Paris, Arkadiy says, “Data breaches and cyber threats are relentless so it’s vital that industries such as HR, law, government, and beyond are securing every aspect of their technology stack to protect their data. Unfortunately, the speed of AI adoption means that many businesses are sleepwalking into a cyber catastrophe, leaving critical gaps in their data protection processes and putting both sensitive internal and customer data at risk. “Even in an area such as meeting transcripts, there are sensitive conversations around company financials or workplace policy updates that cannot be exposed, requiring privacy-first collection and storage methods for data to protect against a breach. Understanding the risks and putting in place enterprise-grade security and data privacy can help businesses better guard against these risks, even with the added exposure from AI.” Viva Technology, hosted this year between 11 and 14 June in Paris, is Europe’s largest startups and technology event, attracting over 150,000 attendees and 11,000 startups each year. Key themes this year include the pace of AI innovation, regulation, the importance of human control, vertical industry applications for AI, and data security.

AI summit warns of ‘skills cliff edge’

Industry leaders gathered during London Tech Week at the House of Lords this week for a high-level summit on the impact of artificial intelligence (AI) on the jobs market and wider UK economy, with speakers warning of the "skills cliff edge." Chaired by Steven George-Hilley of Centropy PR, the debate saw experts from leading law firms, financial services, and tech startups discuss how AI is reshaping the workforce and the risks and talent pipeline required to maximise its economic benefits. Cyber expert Achi Lewis-Dhaliwal, AVP UK, EMEA & India, Absolute Security, says, “The financial services industry houses vast quantities of sensitive data that is constantly subject to threats from malicious cyber actors, especially with the rise of AI-powered attacks. These House of Lords discussions should be grounded in the understanding of cyber risks against the UK’s most important industries, and the cyber resilience postures that can ensure they remain operational.” Leigh Allen, Strategic Advisor, Cellebrite, comments, “AI is a critical enabler in unlocking digital evidence and significantly reducing investigation times, greatly aiding police forces and combating national security threats. At Cellebrite, we combine ethical access to digital evidence alongside artificial intelligence to equip agencies to respond and counteract digital threats to make our society a safer place.” James Tuttiett, Sales Director UK & EMEA at FDM Group, adds, “There’s a lack of a united vision and strategy across all industries when it comes to AI. We’re seeing that most organisations are still in the experimental phase, testing the ways that AI can influence and improve their business functions while driving greater efficiency. Whilst there is not a one size fits all approach being adapted, what is clear is that the integration of AI is immanent and creating an AI-literate workforce for the future is vital. “As we look to the impact that AI will have on future jobs, more emphasis needs to be placed on our understanding of the questions we ask of AI and not just the answers it gives. Embracing AI, and understanding how prompt engineering can improve all of our careers, is essential.” Tech expert Arkadiy Ukolov, Founder of Ulla Technology, argues, “Privacy and data security must remain a critical focus as AI adoption continues to skyrocket, especially as [the] most popular AI tools send data to third-party AI providers which often use client data to train models. When it comes to sensitive meeting discussions, for example, it creates a significant risk of data leaks, so placing ethics at the centre of House of Lords discussions is vital as AI develops.” Stuart Harvey, CEO of Datactics, notes, “In the rush to adopt AI tools, we must first recognise the importance of data quality and readiness to underpin high-performing AI. Many organisations still operate in fragmented data environments, risking inaccurate model outputs and unreliable responses. Without data readiness, AI cannot be successful.” Chris Davison, CEO of NavLive, concludes, “AI is at the forefront of the UK’s growth, [including] transformative applications such as 2D and 3D building modelling in real-time to help expedite developments and facilitate sustainable building practices. By creating accurate real-time spatial data across the lifecycle of a building, architects, engineers, and construction professionals can save significant time and money.”

Ciena publishes report on wave services demand

Ciena, an American networking systems and software company specialising in optical networking equipment, has compiled a new report on wavelength services that explores the key drivers of the need for high-speed connectivity. The report examines the critical role of wave services in enabling the expansion of interconnected data centres driven by artificial intelligence (AI), the growing importance of low latency and data sovereignty for AI workloads, and the build-out of terrestrial and critical submarine network infrastructure. It also highlights the pivotal role of managed optical fibre network (MOFN) business models to expand high-speed connectivity into new geographies and markets. “As cloud providers scale data centre networks to address AI performance requirements, wave services must also evolve in terms of capacity, coverage, latency, and route diversity,” says Mark Bieberich, Vice President of Portfolio Marketing, Ciena. “Demand for wave services is growing steadily worldwide as data centre network expansion requires increasingly high-capacity interconnection among various types of network operators and end users.” The total wave services circuits market in the US grew nearly 8% in 2024 and is projected to grow steadily through 2029, based on research from Vertical Systems Group. It observed an increasing use of wave services for cloud on-ramps, which is demonstrated by the metro geographical scope (41%) along with the dominance of retail customers (58%). The report states that, from 2024 to 2029, growth in 400G circuits is set to soar, while 100G circuits will see a steady rise and 10G circuits will experience modest growth. Wave services are the foundation of most high-capacity networks, particularly when connectivity to or between data centres is involved. High bandwidth, protocol transparency, and low latency are some of their fundamental characteristics. Wave services can either act as end services or support higher-layer services. Based on Dense Wavelength Division Multiplexing (DWDM) technology, they enable massive data-transmission bandwidth over a fibre pair. Currently, wave services are dominated by 100G and 400G connections. There is still a high volume of 10G services deployed, but they are being upgraded to 100G at a steady pace. Ciena’s report also looks at the growth of submarine cables. It highlights that a record 161,100km of submarine cables are planned to become ready for service (RFS) in 2025, dwarfing the previous high of 121,000km becoming RFS back in 2001. “With infrastructure expanding rapidly and resource constraints increasingly shaping growth, anticipating demand has never been more important,” continues Mark. “Network operators providing wave services can seize this moment by proactively routing new submarine cables to emerging data centres and innovating to address these challenges. Differentiation through greater route diversity, low-latency connectivity, and compelling managed services is key to staying ahead.” The report provides an analysis of the current industry landscape, evaluating key trends and identifying factors poised to influence the market in the coming years.