Consider the plight of the modern data center. The realization that data is growing at an exponential rate and that this must be addressed is something that seems to be engraved in the hearts and minds of those who work, live, and breath the infrastructure that connects our digital lives.
However, along with the non-tangible aspects of data growth come the hardware-related challenges associated with the high-performance computing power that is needed to carry this data from end to end at speeds that satisfy all involved.
And, at the epicenter of this computing challenge, comes the need for optical networking—the lifeblood of the modern data center and the conduit through which everything flows. It is this single core aspect that will require the single largest investment in technology infrastructure in the history of the modern digital age.
Key Takeaways
- Explosive data growth is placing unprecedented demand on data center infrastructure, with optical networking positioned as the critical conduit required to move that data at the speeds modern digital operations demand.
- The global optical communication and networking market is projected to nearly double from approximately $15 billion in 2017 to $24 billion by 2023, reflecting just how central optical infrastructure has become to supporting data growth.
- Data creation has shifted dramatically over the past decade, from being primarily corporate-generated to now being driven by IoT devices, personal smartphones, social media, and constant internet penetration across nearly every aspect of daily life.
- North America is generating data at the fastest rate of any global region, driven partly by mega data center operators like Amazon, Apple, Facebook, Google, and Microsoft, positioning the region at the center of the ongoing data explosion.
- With personal devices, IoT adoption, and mobile web usage continuing to expand rapidly, businesses need optical networking infrastructure capable of scaling alongside this growth rather than struggling to keep pace with it.
More Data, More Optical
Although I’m not one to ever be accused of being an alarmist when it comes to data, its growth is alarming in many ways. So much so, in fact, that the optical communication and networking market has been deemed the fastest-growing market in the world, simply because of the explosion in data. To put that in financial terms, the market stood at approximately USD$15 billion in 2017—a telling number in itself. However, to bring an even starker reality to the table, that same market is predicted to grow to a whopping USD$24 billion by 2023.
So, why so much growth? It simply comes down to the amount of data being created every second of every day. If you were to look back even 10 years, aside from whatever data was a result of social media and the advent of the smartphone, the majority of data was generated by corporations. Now, however, the concept of Internet penetration permeates everything from IoT, to personal devices, to media, and its associated creation and consumption all lead to the need for bigger and better data center deployments—all built to meet the needs of digital progress.
North America Fueling the Data Boom
What is more interesting is that it seems North America–generated data is growing at the fastest rate of any global region. Whether that is because of our inherent consumerism—or the number of cat videos our CEO uploads to the Internet on a daily basis—our part of the world is driving the data wave.
Of course, there is also the seemingly massive increase in data traffic through what many now call “mega” data centers—the big players in the space—including Amazon, Apple, Facebook, Google, and Microsoft to name a few, the collective companies that drive all things mobile Web.
In short, if we in North America are going to be at the absolute center of the data storm and its associated growth in the next five years, our collective optical networking games better be on point. With more personal devices being introduced every day, IoT expanding into everyone’s homes—and our CEO hinting at another cat purchase—we are all in for one heck of a ride.
Looking to improve your optical network? The engineers at Inteleca will provide solutions to meet your specific needs—contact us.
FAQs
Why is optical networking so important to modern data centers?
Optical networking serves as the core infrastructure that allows massive volumes of data to move through a data center at the speeds required to support modern digital operations. As data volumes continue growing exponentially, driven by IoT devices, personal technology, social media, and mega data center operators, traditional networking approaches simply cannot keep pace with the throughput demands. This has made optical networking investment one of the most significant infrastructure priorities in the technology industry, positioning it as essential rather than optional for data centers looking to remain competitive. Businesses evaluating their own infrastructure can explore optical networking design services to understand what capacity their specific environment requires.
Why is the optical networking market growing so quickly?
The optical networking market is projected to grow from approximately $15 billion in 2017 to $24 billion by 2023, driven primarily by the sheer volume of data being created every second across IoT devices, personal smartphones, social media platforms, and mega data center operators like Amazon, Google, and Microsoft. A decade ago, most data originated from corporations, but today internet penetration touches nearly every aspect of daily life, generating data at a scale that requires significantly more robust networking infrastructure to transport it efficiently. This shift has made optical networking one of the fastest-growing markets in the world as data centers race to keep pace with demand.
Why is North America generating data faster than other global regions?
North America’s rapid data generation is driven by a combination of high consumer technology adoption, widespread internet penetration, and the concentration of major mega data center operators including Amazon, Apple, Facebook, Google, and Microsoft, all of which drive significant mobile web and cloud traffic. As personal devices continue proliferating and IoT expands further into homes and daily life, North America is positioned at the center of ongoing global data growth. This places particular pressure on businesses and infrastructure providers in the region to ensure their optical networking capabilities can scale alongside this accelerating demand.
How has the source of data creation changed over the past decade?
A decade ago, the majority of data was generated primarily by corporations conducting business operations. Today, data creation has shifted dramatically toward being driven by consumer technology, including social media platforms, smartphones, and an expanding ecosystem of IoT devices connected throughout homes and daily life. This shift toward pervasive internet penetration across nearly every device and interaction has fundamentally changed the scale and nature of data center demands, requiring infrastructure that can handle both the volume and variety of data sources that didn’t exist at this scale even ten years ago.

