SAN FRANCISCO – October 31, 2026 -- Combined data center Ethernet switch and NIC market revenue will double within five years to surpass $50 billion, according to Crehan Research's latest Data Center Networking Long-Range Forecast Reports.
Back-end AI Ethernet networking revenue to grow eight-fold
Generative AI is expected to be a major driver of the expansion. Crehan forecasts that back-end AI Ethernet networking alone will increase eight-fold and account for over one-third of total market revenue.
One-million-plus accelerator clusters drive investment plans
Seamus Crehan, president of Crehan Research, attributed the forecast to customer plans for significant investment, with numerous AI clusters of more than one million accelerators now on the horizon. Many additional customers are deploying small-size Ethernet clusters as AI extends across business functions, he said.
800G, 1.6T and 3.2T Ethernet ramps to follow in succession
The reports also predict strong successive ramps in 800 gigabit, 1.6 terabit and 3.2 terabit data center Ethernet networking to handle these workloads. Generative AI requires considerably more network bandwidth than other workloads, Crehan said, and needs it "at a faster cadence."