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Light travels 300km in 1 millisecond. Intra datacenter latency is not bounded by physics. It is bounded by current technology.

And in 1 millisecond, a 1Ghz CPU will have 1 million cycles. It's a bit like sending a letter and then waiting a month or two for a response.

Nitpick: 1 billion, not 1 million ;)

THz?

From the original comment, 1 GHz = 1 billion Hz = 1 billion cycles

But reading it again, I somehow missed the "In 1 ms" part, which makes it correct.

Light travels much slower (~1.5x slower) on a fiber optic, due to the refractive index (~ 1.5) of the fiber.

Yes, but that is not even the lowest latency technology available today.