With the exponential growth of internet traffic, driven by the increasing number of connected devices and dataintensive applications, there is an urgent need to address the surging demand for higher capacity in datacenter communications. This paper proposes using O-band single-carrier coherent transmission to achieve 1.6 Tbps for intra-datacenter reach (2-10 km), leveraging the advancements in next-generation DACs and the TFLN platform. To support our proposal, we assess experimentally the gain of employing 256 GSa/s interleaved DACs compared to the current state-of-the-art 128 GSa/s DACs. Additionally, we explore the feasibility of utilizing cost-effective DFB lasers in these short-reach systems. Using the 128 GSa/s DAC and DFB lasers, we transmit 120 Gbaud DP-64QAM over 10 km of SSMF under the 20% overhead SD-FEC threshold, featuring a net rate of 1.2 Tbps. Switching to 256 GSa/s DAC, we achieve net 1.6 Tbps transmission over 10 km with 167 Gbaud DP-64QAM below the 25% SD-FEC BER threshold. We observe that the power penalty of using DFB lasers compared to ECLs is less than 1 dB. Furthermore, this study includes a comprehensive analysis of the power consumption envelope for various candidate configurations targeting 1.6 Tbps operation. The comparison reveals the competitiveness of the O-band single-carrier coherent solution, attributed to its simpler architecture and the inherent features of the TFLN platform. The analysis highlights the potential of the proposed solution as a power-efficient and highperformance option for meeting the demanding requirements of 1.6 Tbps Ethernet. Index Terms-Datacenter interconnects, coherent communications, optical fiber communication, O-band coherent transmission, power consumption, thin-film lithium niobate. 128 GSa/s (1 DAC/quad) 256 GSa/s (2 DACs/quad) Fig. 1. Review of recent O-band transmission system demonstrations.