The current data center landscape is about to go through an exciting evolution with the addition of Active Electrical Cables (AECs). These cutting-edge, modular cables address the growing congestion within the racks of computers. They prepare the path for increased demand for extreme bandwidth. Startups Point2 Technology and AttoTude are at the forefront of this exciting development. They are proponents of AECs and complementary technologies that double or triple efficiency improvements.
AECs will probably aggregate multiple individual Graphics Processing Units (GPUs) to network switches. These inexpensive switches are the framework for today’s scale-out networks. With the increasing demand for data, especially in high-performance computing ecosystems, the technology seeks to make data operations more efficient. And Nvidia? Their plans are enormous! By 2027, they plan to increase their GPU capacity from 72 to 576 per system, underscoring the growing demand for sophisticated connectivity solutions.
The Technical Advantages of AECs
Don Barnetson, senior vice president and head of product at Credo, believes that AECs have an amazing opportunity to do incredible things. Specifically, according to him they have reached transmission over 7 meters at 800 Gb/s. This collective capability is critical, especially for complex systems that can involve hundreds of GPUs operating in parallel. AECs are intentionally designed to reduce bottlenecks within racks, enabling the uninterrupted flow of information between next-generation, high performance components.
Point2 Technology incorporates proprietary e-Tube fibers into its cables. Each fiber is capable of carrying more than 200 gigabits of data per second! These e-Tube cables are capable of reaching distances up to 20 times farther than legacy copper cables. On top of that, they take up half the space! This technological improvement shrinks the overall footprint in data centers while delivering superior performance.
“You start with passive copper, and you do everything you can to run in passive copper as long as you can.” – Don Barnetson
AttoTude’s technology is a window to the extraordinary efficacy of AECs. Specifically, it utilizes terahertz-frequency signals to provide off-body data transmission at a staggering 970 Gigahertz over a distance of 4 meters. This impressive pace puts AECs in a strong competitive position against optical technologies that have historically dominated the market.
Comparing Costs and Efficiency
The cost benefits associated with AEC technology should not be overlooked either. Further, Point2 Technology’s systems use at least one-third of the power required by conventional optical solutions. Unlike typical optical systems, these systems are priced as low as one-third the cost. They provide latency rates that are as much as one-thousandth less than those produced by optical fibers. These savings have the potential to greatly impact the bottom line of data centers looking to improve operations while avoiding exorbitant costs.
Point2 Technology is about to produce chips for a 1.6-terabit-per-second record-breaking cable. This cable will consist of eight polymer waveguides and is designed to transmit data at rates reaching 448 gigabits per second using two separate frequencies: 90 GHz and 225 GHz. These technological improvements have the potential to completely change how data centers balance and allocate their resources.
“Customers love fiber. But what they hate is the photonics.” – Dave Welch
This quote from AttoTude’s founder, Dave Welch would sum up a big frustration with many data center operators. Though fiber optics have achieved tremendous success, users all too often find themselves at the mercy of the smoke and mirrors that surround photonics technologies. AECs can provide a straightforward, more streamlined approach.
Future Implications for Data Centers
The impacts of these tech innovations go well beyond increased efficiency measures. As other companies follow suit and move to AECs, they will find their day-to-day business more predictable, reliable, and efficient. Welch is quick to emphasize that electronics will always be more robust than optics. This kind of reliability would help push faster adoption rates by data center operators.
“If I didn’t have to be at an optical wavelength, where should I be?” – Dave Welch
Philip’s provocative question touches on deep issues about how we should go forward with data transmission technologies. Unfortunately, traditional optical systems have intrinsic limitations. Because of this, they hold promise to be the new backbone of our network infrastructure.
Unlike traditional facilities that move power via transmission lines, the distance capabilities of AECs are a natural fit with today’s data center operational requirements. Barnetson much prefers a 7-meter distance that is better suited for developing competencies at scale in big plants. Distance is at its most effective for facilities containing between 500 and 600 GPUs.
“Happens to be a beautiful distance for scale-up in data centers.” – Dave Welch
This is at a time when the demand for data processing is skyrocketing. AECs are uniquely positioned to address these challenges, leading data centers into a new superconductive paradigm of efficiency and performance worldwide.

