Cost of AEC and optical modules

400G AEC cables cost around $150, 800G AEC about $250, while optical modules range from under $100 for short-reach 100G units to several thousand dollars for long-reach variants.AEC (Active Electrical Cables) CostsActive Electrical Cables (AEC) are used for medium-range interconnects, typically 5–7 meters, in AI and cloud data center networks. Current market prices for AEC are approximately $150 for 400G and $250 for 800G units. With increasing competition and new manufacturers entering the market, prices are expected to drop by roughly 20% per year. The AEC market is projected to grow from under $300 million to around $600 million next year, reflecting rising demand in cloud and AI deployments, particularly from providers like AWS and Microsoft .Optical Module CostsOptical modules, such as SFP28, QSFP28, and QSFP56 transceivers, are standalone devices that connect to fiber optic cables. Short-reach 100G modules (e.g., SR4 QSFP28) can cost as low as $99 per unit, while branded long-reach modules (LR/ZR variants) can reach several thousand dollars, depending on distance, type of fiber, and vendor support . Optical modules offer maximum flexibility and reach, supporting distances from 100 meters to over 80 kilometers, but they incur higher CAPEX per link and greater power consumption compared to DAC or AOC solutions .Cost Comparison and ConsiderationsDAC (Direct Attach Copper): Cheapest for very short links (≤3–5 m), low latency, low power, limited reach.AOC (Active Optical Cable): Mid-range cost, suitable for medium distances (≈5–30 m), integrates optical modules and fiber, reduces EMI, and simplifies deployment .AEC: Slightly higher cost than ACC for medium distances, supports longer interconnects within racks, and partially replaces short-distance AOC or multimode optical modules .Optical Modules + Fiber: Highest cost, required for long-distance or carrier-grade links, with flexibility in fiber type and reach . In summary, AEC provides a cost-effective solution for medium-range interconnects, while optical modules are necessary for long-distance, high-flexibility deployments, with prices varying widely based on reach and performance requirements. Choosing between these options depends on distance, latency, power, and budget constraints in your network architecture.