What Engineers Need to Build for the Next Wave of AI Data Center Demands

The rise of AI isn’t just driving demand for faster chips—it’s reshaping the very architecture of data centers. From power delivery to connectivity, nearly every piece of infrastructure must now handle workloads that are larger, faster, and more unpredictable than ever before.

For electrical engineers designing and building the systems behind this AI-driven surge, the challenge is clear: create architectures that are scalable, secure, high-performing, and future-proof. Let’s look at some of the key engineering requirements—and how new technologies, like those from Microchip, are supporting these needs.

1. Scalable, Ultra-Fast Connectivity

AI training models—particularly large language models (LLMs)—require moving massive amounts of data with minimal latency. Standard Ethernet isn’t enough anymore. Engineers must design around architectures that support 800G Ethernet speeds and beyond.

What’s new:
Microchip’s META-DX2C-based 800G Active Electrical Cable (AEC) reference design offers a practical blueprint. It integrates 112G SerDes retimers and supports the CMIS 5.2 protocol on a compact microcontroller, helping designers speed up development of QSFP-DD and OSFP cabling. These advances allow engineers to design faster interconnects while reducing development time and cost.

2. Smarter Fiber Utilization

Traditional point-to-point fiber connections are no longer efficient when hundreds—or thousands—of GPUs need to talk to each other across a data center.

What’s new:
Microchip’s META-DX2+ PHYs with Lambda Splitting are an example of a smart response. By splitting wavelengths and boosting fiber bandwidth efficiency by up to 50%, engineers can maximize existing infrastructure rather than overhauling fiber networks every time speed requirements increase. This is crucial for Data Center Interconnect (DCI) where cost and scalability must go hand in hand.

3. Adaptable and Reliable Edge Networking

Even within a data center, not every networking requirement is high-speed optical. Many control and management functions require efficient, highly reliable Ethernet switching at the edge.

What’s new:
Microchip’s LAN9646 6-Port Gigabit Ethernet Switch demonstrates how edge networking is evolving. It’s designed with flexibility in mind—supporting multiple interfaces (SGMII, RGMII, MII, RMII) and rugged enough for industrial temperatures. It also supports full VLAN and QoS, ensuring that even local traffic inside the data center remains efficient and manageable.

4. High-Density, High-Efficiency Power Delivery

AI hardware consumes a tremendous amount of power—but the available physical space isn’t growing. Delivering reliable, efficient power to high-density servers is one of the biggest electrical challenges today.

What’s new:
Microchip’s MCPF1412 high-density power module provides up to 12A at up to 1.8V from a 16V input—all in a tiny 5.8 mm × 4.9 mm × 1.6 mm package. With built-in I2C and PMBus interfaces for real-time monitoring and control, this kind of modular power solution helps engineers design systems that are both space-efficient and easily adaptable to dynamic power needs.

5. Secure, Intelligent Power Control

Power isn’t just about delivery—it’s also about control, diagnostics, and security.

What’s new:
Microchip’s dsPIC33A Digital Signal Controllers (DSCs) bring together high-speed control, energy efficiency, and integrated cryptographic capabilities. That means power supplies not only react faster and operate more efficiently—they also embed firmware authentication features to prevent tampering and ensure reliable operation in sensitive AI server environments.

6. Scalable System Management

As data centers scale up, managing system health and lifecycle remotely becomes non-negotiable. Out-of-band management needs to be secure, flexible, and standards-based.

What’s new:
Microchip’s microprocessors for OpenBMC implementations support Redfish protocol, secure communications, and remote firmware updates—essential for reducing downtime and keeping systems resilient. Features like real-time system health monitoring and remote reboot capabilities are becoming critical baseline requirements, not optional extras.

7. Root of Trust for the Entire System

Cybersecurity at the firmware and hardware level is now a primary concern for data centers, especially as AI workloads become prime targets for attacks.

What’s new:
Microchip’s Secure Root of Trust Controllers take charge at power-up, authenticating firmware and monitoring key system components throughout operation. They also support secure ownership transfer and lifecycle management, helping future-proof data center infrastructure against evolving security threats.

Conclusion: Building for an AI Future

Electrical engineers aren’t just tasked with scaling old designs—they are building an entirely new generation of infrastructure for AI’s relentless demands.
High-bandwidth interconnects, smarter use of fiber, modular power, and embedded security are no longer nice-to-haves—they are mandatory design considerations.

Microchip’s expanded ecosystem—featuring fast connectivity solutions, secure power delivery, flexible management, and embedded security—provides a toolkit engineers can use to design data centers that are ready for what’s next.

The future isn’t just about more data—it’s about smarter, faster, and safer systems at every level.

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