Innovations in terahertz technology are proving to be game changers in what is shaping up to be the evolution of data center technology. They boast massively improved data transfer speeds. Specifically, the terahertz regime encompasses frequencies between 300 and 3,000 GHz. Businesses and municipalities are already deploying this technology to break the bandwidth bottleneck imposed by legacy copper cables. These innovations aim squarely at keeping up with ever-growing bandwidth requirements. This wave has primarily been fueled by exploding data processing requirements, particularly for artificial intelligence and high-performance computing workloads.
Don Barnetson has been nerding out on this for years. As the CEO of Credo, he is now introducing a record-setting Active Electrical Cable (AEC) that reaches 800 gigabits per second over the relatively modest distance of 7 meters. This innovative example by their enterprise is indicative of how industry is taking innovative approaches to make data transfer more efficient in data centers. David Kuo, another industry thought leader, stresses the immediate necessity to prepare for the future demands of bandwidth. As we approach that terabit-per-second threshold, he claims, the physical realities of copper cabling necessitate a shift towards shorter, thicker designs.
The Role of Welch’s System in Data Transmission
The third element of Dave Welch’s innovative system is a digital component which connects to graphics processing units (GPUs). It comprises a terahertz-frequency generator and a mixer, which encode data onto terahertz signals with high efficiency. This sophisticated combination facilitates remarkable data transfer distances, allowing terahertz signals to carry information as far as 20 meters with minimal loss.
Welch’s waveguide technology further enhances this capability. It is capable of delivering 80Gbps or greater over longer distances, more than 20m, and achieving attenuation as low as 0.3dB/m. That kind of efficiency is a huge advantage compared to the status quo. This is especially useful in high-performance applications such as data centers, where every picosecond of signal degradation counts.
“If I didn’t have to be at [an optical wavelength], where should I be” – Dave Welch
Adopting terahertz technology will have benefits beyond just speed, especially when it comes to reliability compared to optical solutions. As Welch notes, “Electronics have been demonstrated to be inherently more reliable than optics.” This reliability is extremely important for companies that require predictable data performance.
Innovations in e-Tube Technology
Point2 Technology has developed the first-ever e-Tube cable specifically engineered to handle this growing data-heavy pipeline. The e-Tube is capable of transmitting data across its 200-gigabit-per-second fibers. With an 8.1-millimeter diameter cable featuring eight fibers, it’s a slim, space-saving solution with just half the volume of a comparable AEC cable. This special design can extend as much as 20 meters in length with very little loss. This functionality is exactly what’s needed for today’s data center configurations.
For example, a 1.6-terabit-per-second e-Tube cable occupies just half the real estate of a typical 32-gauge copper cable. It serves up a breathtaking reach, offering up to 20 times the distance. This is a stark contrast, demonstrating that these technologies have the potential to fully supplant copper cables. Copper cables are constrained by the inherent limitations we call the “copper cliff.” As bandwidth demands only go up from here, moving beyond legacy copper solutions will be more vital than ever.
“Customers love fiber. But what they hate is the photonics” – Dave Welch
Welch’s statement reveals an understandable collective anxiety from clients. They understand the advantages of fiber optic technology, but they can’t get past the intimidating world of photonics. These challenges are a result of the requirement for micrometer-precision manufacturing in photonic components, which further complicates the production and deployment process.
The Future of Data Centers and GPU Integration
Nvidia is making serious moves to increase the maximum number of GPUs per system to 576 by 2027. With this evolution, the need for faster, more efficient solutions for transmitting data has never been timelier. Unfortunately, this momentous expansion will need strong infrastructure that is up to the task of supporting these high-performing systems.
The transition to terahertz technology couldn’t be more timely with these needs. Smart companies can leverage the systems needed to train the next wave of massive new AI models. This strategy further puts them at the cutting edge of technological innovation in data processing. Don Barnetson’s insights into employing passive copper solutions until they can no longer suffice illustrate a common strategy in the industry: “You start with passive copper, and you do everything you can to run in passive copper as long as you can.”
The combination of Welch’s innovative systems and Point2 Technology’s e-Tube cables positions these companies as frontrunners in adapting to the challenges posed by increasing data demands. As these technologies mature, they may well redefine the landscape of data centers, enabling unprecedented levels of efficiency and capacity.


