TrendForce says rapid growth in AI training and inference is driving data centers to higher power, density and larger-scale clusters. Rising energy use from data movement is prompting cloud service providers to elevate interconnect technology to the same strategic level as compute. Interconnect architecture has become a key determinant of AI-factory expansion speed, energy efficiency and supply-chain control. TrendForce forecasts the co‑packaged optics (CPO) and near‑packaged optics (NPO) market

TrendForce says rapid growth in AI training and inference is driving data centers to higher power, density and larger-scale clusters. Rising energy use from data movement is prompting cloud service providers to elevate interconnect technology to the same strategic level as compute. Interconnect architecture has become a key determinant of AI-factory expansion speed, energy efficiency and supply-chain control. TrendForce forecasts the co‑packaged optics (CPO) and near‑packaged optics (NPO) market will jump from roughly $100 million in 2025 to more than $39 billion by 2030.