More compute for less power in the datacentre

Alongside advanced cooling and modular designs, energy-efficient switching has a crucial role to play in removing performance bottlenecks

As data-driven services continue to surge, datacentres everywhere are feeling the pressure to increase capacity. The rapid escalation in demand for compute, storage and high-speed data movement is exposing weaknesses in traditional infrastructure models and forcing operators to rethink how they build, power and connect their facilities.

Much of the industry focus has been on compute performance and cooling innovations, but there’s another critical layer that’s often overlooked - network switching. Every byte of data that moves within a datacentre passes through switches and as workloads become heavier and more dynamic, switching is emerging as a bottleneck - one that’s as much about energy use as it is about performance.

The hidden cost of switching

In typical datacentres, switches convert data signals between optical and electronic formats thousands of times per second. This process consumes considerable energy and produces heat, which in turn amplifies cooling demands.

With the rise of data-intensive applications, whether that’s in AI, analytics or media delivery, the load on these systems is surging and so is the associated power draw. Network switching already contributes meaningfully to overall datacentre energy use and that impact is expected to grow as workloads become even more complex and data intensive.

Introducing optical switching

Photonics offers a smarter way forward. Optical switches keep data entirely within the light domain during transit, eliminating the need for repetitive conversions. This dramatically reduces both latency and energy consumption - a win for any operator looking to boost performance while lowering operational costs.

Finchetto, a UK-based innovator, has developed an all-optical, packet-level switch that is compact and deployable at the rack level. Its design reduces energy use by up to 50 times in comparison to conventional switches and achieves ultra-low latency.

Advances like these are game changers not only for large-scale campuses but also for smaller, modular datacentre builds looking to optimise every watt. The technology’s low energy footprint also eases the burden on cooling systems, freeing up valuable capacity for compute resources.

The ripple effect: cooling and layout benefits

The benefits of optical switching don’t exist in isolation. Lower energy and heat output at the switching layer help ease pressure on cooling systems and allow for more flexible rack layouts. When combined with modern cooling techniques like immersion and direct-to-chip systems, operators can unlock denser, more efficient datacentre environments that perform better and cost less to run.

Additionally, facilities that cut excess heat at the source are better positioned to implement heat reuse strategies, channelling surplus energy to local housing developments, greenhouses or industrial sites.

Looking beyond metro hubs

While metro datacentres face well-documented challenges, regional and edge facilities have their own distinct hurdles - from limited grid access to constrained budgets. The principles of efficiency, scalability and adaptability are just as critical in these environments. Optical switching is increasingly being seen as a core tool to help meet these demands, ensuring that datacentres of all sizes can scale sustainably and maintain high performance.

In regions where infrastructure upgrades are slower to arrive, adopting low-energy, high-efficiency switching can be a practical way to extend the life and capacity of existing facilities without major capital investment. It also provides operators with a buffer against power price volatility and unexpected surges in local demand, which are key considerations in markets where energy security and predictability are less certain.

As data traffic grows in more remote and distributed locations, bringing high-performance, low-latency switching to these environments will be crucial for supporting new applications - from real-time analytics to IoT and industrial automation.

Building for long-term success

With data demands showing no sign of slowing, the next generation of datacentres must be designed with flexibility and efficiency baked in from the start. Technologies like optical switching won’t just improve today’s performance, they lay the groundwork for tomorrow’s infrastructure, enabling datacentres to adapt as workloads and user needs evolve. Operators should prioritise early engagement with emerging technologies, running proofs of concept to validate integration and performance in real-world scenarios.

Whether you’re operating a hyperscale facility or a regional edge site, investing early in smarter switching and integrated design strategies will be key to staying ahead in an increasingly competitive landscape.

Datacentres that combine energy-efficient switching, modular designs and advanced cooling will not only reduce operating costs but also enhance their ability to scale with confidence.

Darren Watkins is chief revenue officer at VIRTUS Data Centres