Hyperscaler Demand for Open Line Systems to Hit $5B by 2035 as AI Reshapes Data Center Connectivity
Event summary
- ABI Research forecasts U.S. Open Line System (OLS) revenue to reach $5B by 2035, up from under $1B in 2026.
- Hyperscalers will account for nearly 70% of OLS links deployed in the U.S., while Europe shifts toward neocloud adoption.
- Distributed AI data centers are driving demand for flexible optical interconnect strategies to link smaller facilities.
- OLS specialists and newer entrants are gaining ground as standards reduce vendor lock-in.
The big picture
AI is forcing a structural rethink of data center design, with connectivity becoming a strategic differentiator. Hyperscalers are driving demand for flexible optical systems to link distributed compute resources, creating a $5B market opportunity by 2035. The competitive landscape is expanding beyond traditional vendors as standards reduce lock-in and enable new entrants.
What we're watching
- Orchestration Wars
- How vendors will compete on AI-driven, low-latency control software for distributed data centers.
- Regional Shifts
- Whether Europe's neocloud adoption will accelerate beyond hyperscaler dominance by 2035.
- Disaggregation Pace
- The speed at which open-source standards enable multi-vendor integration in optical infrastructure.
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