Solving Data Center Efficiency Bottlenecks With Advanced Transceivers 

Solving Data Center Efficiency Bottlenecks With Advanced Transceivers

The modern data center is the nucleus of technological innovation – but that comes with a cost. That cost is hard to quantify precisely, but data centers probably account for around 1% of global electricity use – a figure that increases year on year. 

As a result, companies who use data center services are prioritizing data center efficiency as part of the process of vetting potential vendors. These companies are under mounting pressure to account for their energy consumption, so efficiency and sustainability are now key differentiators for data center operators. 

In turn, data center operators are adapting to streamline their own energy consumption and demonstrate leadership in data center efficiency. One of the most effective ways to make those improvements is through the procurement of high-quality transceivers.

Here, we are examining the connections between the quality of transceivers that data centers use, and their overall performance and efficiency.

Data Center Efficiency: What it is, and How it Gets Measured

Data center efficiency refers to the ability of a data center to deliver the highest possible performance, with the lowest possible energy consumption. Concerns about data center efficiency are well-founded, given the ever-increasing energy demands that data centers generate.

Data center efficiency is influenced by several factors, including the quality of the infrastructure, the cooling systems, the utilization of computing resources, and the choice of networking equipment, such as transceivers. A highly efficient data center optimizes these components to reduce wasted energy, improve performance, and extend the lifespan of its hardware.

Power Usage Effectiveness (PUE) as a Measure of Data Center Efficiency

Power Usage Effectiveness (PUE) is a key metric used to measure the energy efficiency of a data center, developed by The Green Grid, a consortium dedicated to advancing energy efficiency in data centers. PUE is the ratio of the total amount of energy used by a data center to the energy used by its IT equipment (servers, storage, and networking devices).​


A PUE value of 1.0 is an ideal (and unattainable) value. This value would mean that all the energy a data center consumes goes to IT equipment, without any waste on cooling, lighting and other overheads. The goal of this measure is to minimize the impact of these energy overheads as much as possible.

PUE data is an industry standard, even though it is not the only measure of data center efficiency. PUE scores can be improved through the implementation of higher quality transceivers and interconnects.

The Role of Transceivers in Data Centers: an Overview

Transceivers interface between network devices and cabling infrastructure. They transmit and receive data signals, the basis for communication across the network. By converting electrical signals from devices to optical signals for fiber optic cables (and back again), transceivers enable the transfer of data across large distances. 

Electrical transceivers use copper cables and transmit data as electrical signals. On the other hand, optical transceivers use fiber optic cables to transmit data as light signals, supporting higher speeds and longer distances with minimal signal loss. These transceivers are generally more resistant to electromagnetic interference, making them ideal for high-performance data centers.

In either case, transceiver quality makes the critical difference in terms of energy consumption. 

The Impact of Transceiver Quality on Data Center Efficiency

Lower Power Consumption of IT Equipment

High-quality transceivers typically consume less power per unit of data. For example, advanced optical transceivers with energy-efficient components can send and receive data at higher rates, using less power. These gains add up to significant savings in terms of the overall energy consumption of IT equipment. This effectively reduces the numerator in the PUE calculation.

Reduced Heat Generation and Cooling Requirements

Efficient transceivers are also useful in thermal management, because they use less power, and generate less heat as a result. Lessening heat output means a data center’s cooling systems don’t have to work quite so hard to maintain the right temperature. And because these cooling systems are one of the most energy-intensive parts of any data center, better thermal management can lead to a welcome drawdown in energy costs. 

Better Signal Quality Reduces the Need for Amplification 

A key indicator of transceiver quality is the ability to maintain signal integrity over long distances. By minimizing reliance on amplification or repeaters, advanced transceivers lessen the overall energy usage associated with data transmission. 

Optimized Network Performance and Reduced Latency

Better quality transceivers often support higher data rates and lower latency. This allows for more efficient data processing and transmission, so it takes less time and energy to move data around the network. Efficient data handling reduces the workload on network equipment and servers, leading to lower power consumption and better overall data center energy efficiency.

Transceiver Form Factors and Their Efficiency Benefits

  • Explanation of different transceiver form factors (e.g., SFP, QSFP28, QSFP-DD).
  • How form factors affect power usage, heat generation, and cooling requirements.
  • Benefits of high-density, low-power form factors in optimizing data center infrastructure.
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The modern data center is the nucleus of technological innovation – but that comes with a cost. That cost is hard to quantify precisely, but data centers probably account for around 1% of global electricity use – a figure that increases year on year.  As a result, companies who use data center services are prioritizing […]

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