Japan-based NTT aims to produce a next-generation server switch supporting its flagship Innovative Optical and Wireless Network (IOWN) technology, co-developed with Broadcom and other chipmakers, by the end of next year, Nikkei Asia reported.

The companies are developing optical-based chips that replace traditional electrical wiring with optical signals, with the goal of doubling processing speed and capacity and slashing data centre power usage by up to 50 per cent, the news agency stated.

In a presentation on 6 October focused on IOWN, NTT said it targets commercialisation of its photonics-electronics convergence device (PEC-2) in network switches by Q4 2026.

In addition to Broadcom, NTT is partnering with Shinko and Accton.

NTT CTO Rick Hoshino cited data forecasting the global AI market will grow more than sixfold between 2024 and 2030, reaching $1.8 trillion, with data centre power consumption predicted to double.

The company has pushed its IOWN initiative since 2021, with the aim of developing a high-capacity communication platform using an all-photonics network comprising silicon, edge computing and wireless distributed computing.

In early 2024, NTT was reportedly looking to partner with Intel and SK Hynix to develop and mass-produce next-generation chips using optical technology to reduce power consumption.