Why InfiniBand vs Ethernet matters for Data Centers?

Why InfiniBand vs Ethernet matters for Data Centers
Over the four decades since its introduction in 1980, Ethernet has become a ubiquitous term for network connectivity. However, over the past decade, InfiniBand has emerged as a competing standard with specific advantages for data centers that support complex compute tasks like Machine Learning and AI.
What is the difference between Ethernet and InfiniBand? If you search the web, you’ll find many excellent highly-technical articles focused on hardware specifications.
That explains the difference at a technical level, but what are the key differences between these standards and why do they matter for data centers?
What is Ethernet?
Ethernet is a wired network specification standard published on September 30, 1980 and developed by Xerox, Intel, and DEC company. It is a system for physically connecting computer systems with protocols for how information should be exchanged.
One of the main functions of Ethernet is to control how information is exchanged between two or more systems. If those systems try to transmit data to each other at the same time, a “data packet collision” would occur. Ethernet includes rules that allow networked devices to talk to each other without collisions.
In 2024, the IEEE Standards Association announced Ethernet speeds up to 800 gigabits per second (Gbps).
What is InfiniBand?
Infiniband is an open standard network communications technology introduced in 1999 and promoted by the InfiniBand Trade Association for use in high-performance computing (HPC). It features high throughput and low latency.
InfiniBand networks have central hubs called switches that direct data traffic to different devices and endpoints. Since the switches manage data flow, that means multiple systems can transmit data at the same time.
The InfiniBand standard is owned by the InfiniBand Trade Association. However, since 2020 Nvidia is the largest manufacturer of InfiniBand components thanks to their acquisition of Mellanox Technologies.
At present, InfiniBand supports multiple different data rates, from Infiniband SDR (Single Data Rate) with 10 Gbps to InfiniBand NDR (Next Data Rate) with speeds from 400 Gbps to 800 Gbps.
Comparing Ethernet vs. InfiniBand for Data Centers
Ethernet and InfiniBand are both network standards and they have similar top speeds. So, what makes them different - especially when it comes to data centers and servers built for complex compute tasks?
First, it’s important to know that there is no obvious “winner” between these two technologies. They both have valid uses and offer competitive advantages over each other.
With that in mind, here are four specific reasons why cloud GPU providers like Voltage Park are designed with InfiniBand.
No Packet Loss. InfiniBand offers “zero-packet loss design.” Essentially, it’s designed so data never needs to be resent. That makes it more efficient for high-performance computing, where fast communication between networked nodes is critical - especially for tasks like Machine Learning and AI training.
Lower Protocol Overhead. Ethernet can require extra protocols to avoid loops or manage congestion, which adds overhead as the network expands. InfiniBand reduces or eliminates these overheads, resulting in networks that scale up with fewer performance losses.
Better Scalability. InfiniBand is better suited for massive, interconnected systems, such as those found in AI clusters or HPC environments. Scalable Hierarchical Aggregation and Reduction Protocol (SHARP) allows for seamless scaling of data aggregation.
Optimized GPU Integration. Because Nvidia is a primary manufacturer of InfiniBand hardware solutions, they are specifically designed to work seamlessly with industry-standard Nvidia GPUs like NVIDIA HGX H100. This tight integration maximizes performance for GPU-accelerated workloads.
Voltage Park runs on InfiniBand
Voltage Park runs on NVIDIA Quantum-2 InfiniBand, which ensures low latency for both On-Demand GPU and Dedicated Reserve Cloud.