Ciena report highlights rising wave service demand & cable growth

Ciena has published a report analysing growing demand for wave services as artificial intelligence (AI), data centre interconnect (DCI), and cloud technologies continue to reshape global network requirements.

The report details significant developments in the connectivity sector, highlighting how the expansion of hyperscale data centres and managed optical fibre networks (MOFN) is driving change in high-speed network infrastructure. Forecasts indicate that 39 new hyperscaler data centres are expected to be operational by the end of 2025.

Growth in wave services

The report identifies wave services as fundamental to meeting the evolving needs of data centre interconnection, with underlying demand increasingly shaped by developments in AI and cloud technology. These trends have resulted in heightened requirements for high-capacity, low-latency, and diversified network paths.

"As cloud providers scale data centre networks to address AI performance requirements, wave services must also evolve in terms of capacity, coverage, latency, and route diversity," said Mark Bieberich, Vice President of Portfolio Marketing, Ciena. "Demand for wave services is growing steadily worldwide, as data centre network expansion requires increasingly high-capacity interconnection among various types of network operators and end users."

Research from Vertical Systems Group, cited in the report, reveals that the total wave services circuits market in the United States grew by nearly eight percent in 2024, with a projection of continued steady growth through 2029. This growth is particularly noticeable in cloud on-ramps, evidenced by the 41% share taken by metro geographical scope and the prevalence of retail customers at 58% of the market.

In terms of capacity, the report forecasts a substantial increase in 400G circuits between 2024 and 2029, while 100G circuit deployments are also projected to rise steadily. Conversely, growth in 10G circuits is expected to be more modest.

Wave services, which leverage Dense Wavelength Division Multiplexing (DWDM) technology, offer significant data-transmission capacity via optical fibre. The backbone of data centre connectivity, these services are currently dominated by 100G and 400G connections, although many existing 10G circuits are being upgraded in response to rising performance demands.

Submarine cable milestones

The report also underscores an exceptional year for the submarine cable sector, noting that a record-breaking 161,100 kilometres of submarine cable are set to become ready for service (RFS) in 2025. This figure surpasses the previous high of 121,000 kilometres, which was reached in 2001, marking a new phase of global network infrastructure development.

"With infrastructure expanding rapidly and resource constraints increasingly shaping growth, anticipating demand has never been more important," Bieberich added. "Network operators providing wave services can seize this moment by proactively routing new submarine cables to emerging data centres and innovating to address these challenges. Differentiation through greater route diversity, low-latency connectivity, and compelling managed services is key to staying ahead."

Expansion in submarine cable routes is synchronised with the needs of emerging and established data centre locations, supporting the transfer of substantial data volumes across continents. With managed services and increasing route diversity playing growing roles, operators are repositioning their offerings in line with infrastructure trends and technological advancements.

Industry analysis and outlook

The findings from Ciena's report are based on a detailed assessment of current connectivity trends. The report presents a comprehensive look at how the evolution of data centre architecture and demand for AI processing are influencing every layer of the network service landscape. Key considerations include the drive for lower latency, regulatory requirements around data sovereignty, and the need to expand high-speed services to new regions and user groups.

By providing forecasts through 2029, the report intends to help stakeholders in the telecommunications, cloud, and data centre industries plan and strategise effectively to maintain competitive positioning as network capacity demands accelerate. The analysis highlights not just technological drivers, but the operational and market considerations that are shaping wave services growth globally.