A 16-channel arrayed waveguide grating (AWG) with an 800 GHz channel spacing in the O-band has been developed and fabricated based on silica planar lightwave circuit (PLC) technology. By extending the wavelength allocation from 8 channels to 16 channels as specified in IEEE 802.3bs, we increased the number of channels and boosted transmission capacity to meet the 1.6 Tbps and higher-speed signal transmission requirements for future data centers. Through optimizing the AWG structure, it has achieved insertion loss (IL) better than -1.61 dB, loss uniformity below 0.35 dB, polarization-dependent loss (PDL) below 0.35 dB, adjacent channel crosstalk under -20.05 dB, ripple less than 0.75 dB, center wavelength offset under 0.22 nm and 1 dB bandwidth exceeding 2.88 nm. The AWG has been successfully measured to transmit 53 Gbaud 4-level pulse amplitude modulation (PAM4) signal per channel and the total transmission speed can reach 1.6Tbps and above.