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Why Are Data Centers Moving Away From DSP-Based 400G Optical Cables?

September 27, 2023 by
Why Are Data Centers Moving Away From DSP-Based 400G Optical Cables?
Nexgen A/S, Nicolas Geets

The relentless growth in data traffic is pushing optical interconnect technology to its limits. As network infrastructure transitions from 100G to 400G Ethernet, transceiver design has grown significantly more complex. Today's 400G QSFP-DD multimode modules commonly rely on a 7nm Digital Signal Processor to handle 50Gb/s PAM4 signal conditioning — processing everything in the digital domain before retransmission.

A different approach

Rather than following the DSP path, some engineers are turning to Clock and Data Recovery (CDR) circuits as the core signal-handling technology. Stripping out the DSP in favor of analog CDR logic streamlines the hardware architecture considerably, with direct benefits in manufacturing simplicity, unit cost, power draw, and signal latency.

Where it matters most

Certain industries treat latency not as a spec item but as a competitive weapon. High-performance computing, algorithmic trading platforms, supercomputing clusters, immersive gaming infrastructure, and 5G fronthaul networks all share one thing: every nanosecond counts. CDR-based active optical cables (AOCs) address this directly — the latency gap versus a conventional DSP-based 400G module can reach 100ns, a massive delta in time-sensitive environments.

What CDR-based AOCs bring to the table

  • Power efficiency — roughly 7.5W per cable end versus approximately 10W for DSP-based equivalents
  • Ultra-low latency — as low as 20ns end-to-end
  • Reach — up to 70m over OM3 fiber, and 100m over OM4
  • Thermal resilience — extended operating temperature range suited to 5G outdoor deployments
  • Management compatibility — full CMIS 4.0 support

The bottom line

For any deployment where latency drives the buying decision, CDR-based optical cables offer a compelling proposition: no meaningful cost premium, better power efficiency, and longer reach. Nexgen offers customization and application-specific development options, with cable lengths available from 1m to 100m to cover the vast majority of data center and edge interconnect scenarios.