Dell'Oro: 20% of ethernet data center switch ports will connect to AI servers by 2027

More than $100B in ethernet data center switch sales over next five years. #pressrelease

July 18, 2023

1 Min Read

REDWOOD CITY, Calif. – According to a recently published report by Dell’Oro Group, the trusted source for information about the telecommunications, security, networks, and data center industries, twenty percent of Ethernet Data Center Switch ports will be connected to accelerated servers to support Artificial Intelligence (AI) workloads by 2027. The rise of new generative AI applications will help fuel more growth in an already robust data center switch market, which is projected to exceed $100 B in cumulative sales over the next five years.

Additional highlights from the Ethernet Switch – Data Center 5-Year July 2023 Forecast Report:

  • Nearly half of the data center switch ports will be driven by 400 Gbps speeds and higher by 2027.

  • 800 Gbps is expected to eclipse 400 Gbps by 2025.

  • Co-packaged Optics will not materialize during our forecast horizon.

  • SONiC adoption is expected to accelerate, achieving a 10-20 percent penetration rate in Tier 2/3 Cloud SPs and large enterprises by 2027.

Read the full press release here.


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