The quiet infrastructure shift powering the next generation of data centers
Updated
January 30, 2026 11:42 AM
Peripheral Component Interconnect Express (PCIe) port on a motherboard, coloured yellow. PHOTO: UNSPLASH
Modern data centers operate on a simple yet fundamental principle: computers require the ability to share data extremely quickly. As AI and cloud systems grow, servers are no longer confined to a single rack. They are spread across many racks, sometimes across entire rooms. When that happens, moving data quickly and cleanly becomes harder.
Montage Technology, a Shanghai-based semiconductor company, builds the chips and connection systems that help servers exchange data without delays. This week, the company announced a new Active Electrical Cable (AEC) solution based on PCIe 6.x and CXL 3.x — two important standards used to connect CPUs, GPUs, network cards and storage inside modern data centers.
In simple terms, Montage’s new AEC product helps different parts of a data center “talk” to each other faster and more reliably, even when those parts are physically far apart.
As data centers grow to support AI and cloud workloads, their architecture is changing. Instead of everything sitting inside one rack, systems now stretch across multiple racks and even multiple rows. This creates a new problem: the longer the distance between machines, the harder it is to keep data signals clean and fast.
This is where Active Electrical Cables come in. Unlike regular copper cables, AECs include small electronic components inside the cable itself. These components strengthen and clean up the data signal as it travels, so information can move farther without getting distorted or delayed.
Montage’s solution uses its own retimer chip based on PCIe 6.x and CXL 3.x. A “retimer” refreshes the data signal so it arrives accurately at the other end. This allows servers, GPUs, storage devices and network cards to stay tightly connected even across longer distances inside large data centers.
The company also uses high-density cable designs and built-in monitoring tools so operators can track performance and fix issues faster. That makes large data centers easier to deploy and maintain.
According to Montage, the solution has already passed interoperability tests with CPUs, xPUs, PCIe switches and network cards. It has also been jointly developed with cable manufacturers in China and validated at the system level.
What makes this development important is not just speed. It is about scale. AI models, cloud services and real-time applications demand massive amounts of data to move continuously between machines. If that movement slows down, everything else slows with it.
By improving how machines connect across racks, Montage’s AEC solution supports the kind of infrastructure that next-generation AI and cloud systems depend on.
Looking ahead, the company plans to expand its high-speed interconnect products further, including work on PCIe 7.0 and Ethernet retimer technologies.
Quietly, in the background of every AI system and cloud service, there is a network of cables and chips doing the hard work of moving data. Montage’s latest launch focuses on making that hidden layer faster, cleaner and ready for the scale that modern computing now demands.
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Sensing technology is facilitating the transition of drone delivery services from trial phases to regular daily operations.
Updated
January 23, 2026 10:41 AM
A quadcopter drone with package attached. PHOTO: FREEPIK
A new partnership between Hesai Technology, a LiDAR solutions company and Keeta Drone, an urban delivery platform under Meituan, offers a glimpse into how drone delivery is moving from experimentation to real-world scale.
Under the collaboration, Hesai will supply solid-state LiDAR sensors for Keeta’s next-generation delivery drones. The goal is to make everyday drone deliveries more reliable as they move from trials to routine operations. Keeta Drone operates in a challenging space—low-altitude urban airspace. Its drones deliver food, medicine and emergency supplies across cities such as Beijing, Shanghai, Hong Kong and Dubai. With more than 740,000 deliveries completed across 65 routes, the company has discontinued testing the concept. It is scaling it. For that scale to work, drones must be able to navigate crowded environments filled with buildings, trees, power lines and unpredictable conditions. This is where Hesai’s technology comes in.
Hesai’s solid-state LiDAR is integrated into Keeta's latest long-range delivery drones. LiDAR stands for Light Detection and Ranging. In simple terms, it is a sensing technology that helps machines understand their surroundings by sending out laser pulses and measuring how they bounce back. Unlike GPS, LiDAR does not rely solely on satellites to determine position. Instead, it gives drones a direct sense of their surroundings, helping them spot small but critical obstacles like wires or tree branches.
In a recent demonstration, Keeta Drone completed a nighttime flight using LiDAR-based navigation alone without relying on cameras or satellite positioning. This shows how the technology can support stable operations even when visibility is poor or GPS signals are limited.
The LiDAR system used in these drones is Hesai’s second-generation solid-state model known as FTX. Compared with earlier versions, the sensor offers higher resolution while being smaller and lighter—important considerations for airborne systems where weight and space are limited. The updated design also reduces integration complexity, making it easier to incorporate into commercial drone platforms. Large-scale production of the sensor is expected to begin in 2026.
From Hesai’s perspective, delivery drones are one of several forms robots are expected to take in the coming decades. Industry forecasts suggest robots will increasingly appear in many roles from industrial systems to service applications, with drones becoming a familiar part of urban infrastructure rather than a novelty.
For Keeta Drone, this improves safety and reliability. And for the broader industry, it signals that drone logistics is entering a more mature phase—one defined less by experimentation and more by dependable execution. Taken together, the partnership highlights a practical evolution in drone delivery.
As cities grow more complex, the question is no longer whether drones can fly but whether they can do so reliably, safely and at scale. At its core, this partnership is not about drones or sensors as products. It is about what it takes to make a complex system work quietly in real cities. As drone delivery moves out of pilot zones and into everyday use, reliability matters more than novelty.