Scaling the capacity while maintaining low latency and power consumption is a challenge for hierarchical data center networks (DCNs) based on electrical switches. In this work we present a novel all-optical flat DCN architecture OPSquare that potentially addresses the scaling issues by employing parallel intra-/inter-cluster switching networks, distributed fast WDM optical cross-connect (OXC) switches, and a novel top-of-rack (ToR) switch architecture. The fast (nanoseconds) WDM OXC switches allow flexible switching capability in both wavelength and time domains and statistical multiplexing. The OPSquare DCN performance targeting Petabit/s capacity has been thoroughly assessed. First the packet loss, latency, throughput, and scalability are numerically investigated under realistic data center traffic model. Results indicate that when scaling the DCN size up to 1024 ToR switches, a packet loss ratio below 10-6 and a server end-to-end latency lower than 2 μs can be guaranteed at load of 0.3 with limited 20 kB buffer. Then, the experimental evaluation of the DCN by employing 4 × 4 OXC prototypes shows multi-path dynamic switching with flow control operation. The case deploying 32 × 32 and 64 × 64 OXC switches connecting 1024 and 4096 ToRs are emulated and limited performance degradation has been observed. The potential of switching higher-order modulation and waveband signals further proves the suitability of OPSquare architecture for Petabit/s and low-latency DCN by using optical switches with moderate radix.