Jul 29, 2026 · 24 min
Data centers replace copper with optics to solve AI power bottlenecks
The Stock That Went Up 1000% | Lumentum CEO
The physical limits of copper wiring threaten to stall AI scaling, making the transition to optical connectivity a critical bottleneck for the next generation of data centers.
- 1Optical connectivity solves the critical heat and power limitations of traditional copper wiring inside high-performance AI data centers.
- 2Operating in-house fabrication facilities allows optical manufacturers to manage supply constraints better than fabless chip designers.
- 3Strategic simplification has expanded laser technology from terrestrial server racks to space-based satellite internet networks.
Don't miss
Michael Hurlston explains the transition from copper to optical connectivity and how fiber optics move data faster with less heat.
The brief
Artificial intelligence clusters are pushing hardware to its physical limits, forcing data centers to transition away from traditional copper wiring because of massive power demands, extreme heat generation, and critical speed bottlenecks.
Lumentum CEO Michael Hurlston explains that optical connectivity is replacing copper to move data faster, but scaling this infrastructure requires operating proprietary fabrication facilities rather than relying on outsourced chip manufacturing.
To sustain rapid growth, Lumentum simplified its strategic focus, applying its core laser technology beyond terrestrial data centers to power space-based satellite internet systems like SpaceX's orbital network.
The expansion of optics is not without friction, as hardware manufacturers must navigate tight supply constraints and complex geopolitical realities when supplying critical optical components to the Chinese market.
Featuring
Data Center
Optical Connectivity
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