Offshore wind farms will have larger capacities in the future than they do today. Thus, the costs that are associated with the installation of wind turbines and the connection of power grids will be much higher, thus the location of wind turbines and the design of internal cable connections will be even more important. A large wind farm comprises of hundreds of wind turbines. Modeling each using a complex model leads to long simulation times—especially in transient response analyses. Therefore, in the future, simulations of power systems with a high wind power penetration must apply the equivalent wind-farm model to reduce the burden of calculation. This investigation examines significant issues around the optimal design of a modern offshore wind farm layout and its equivalent model. According to a review of the literature, the wake effect and its modeling, layout optimization technologies, cable connection design, and wind farm reliability, are significant issues in offshore wind farm design. This investigation will summarize these important issues and present a list of factors that strongly influence the design of an offshore wind farm.