Prysmian has signed a long-term agreement worth up to €5.5 billion with Molex to supply optical cables used inside data centers. The agreement can run for up to 10 years and includes a €550 million upfront payment.
Molex is a subsidiary of Koch and provides electronic connectivity products for industries including data centers, automotive systems and industrial equipment. The agreement is designed to support growing demand for high-capacity data center connectivity infrastructure.
The Molex partnership forms part of a broader set of agreements and commercial initiatives involving hyperscalers and data center infrastructure providers. Prysmian expects these initiatives to generate more than €10 billion in additional cumulative revenue through 2035 compared with its 2025 baseline.
Annual revenue from these agreements could reach as much as €1.1 billion beginning in 2031. Hyperscalers are large technology companies that operate extensive cloud computing and data center networks requiring significant amounts of power and high-speed connectivity.
Prysmian plans to invest €1.25 billion through 2031 to expand its optical fiber and cable manufacturing capacity. The investment will more than double the company’s fiber production capacity in the United States compared with its current level.
The expansion will cover optical cable and fiber manufacturing, including the glass preforming stage used to produce optical fibers. Prysmian plans to increase capacity at facilities in both the United States and Europe.
The manufacturing program is expected to create more than 1,000 jobs globally. Approximately 600 of those positions are expected to be located in the United States.
Prysmian said it is one of three manufacturers producing fiber and optical cables in the U.S. The company also described itself as the only major domestic producer serving the European market.
The capacity increase will extend Prysmian’s Digital Solutions business further into the infrastructure located inside data centers. The company already supplies digital connections and electrical systems used to connect data centers with power grids and broader communications networks.
Inside-data-center cabling connects servers, switches and other computing equipment throughout a facility. These connections are becoming more important as artificial intelligence workloads increase the volume of data moving between computing systems.
AI infrastructure requires large clusters of processors to communicate quickly and efficiently. This trend is increasing demand for higher fiber density, meaning more optical connections must be installed within the same physical space.
Prysmian expects data center modernization cycles to create additional demand for its products. Operators are upgrading existing facilities to increase computing performance, improve energy efficiency and accommodate evolving AI architectures.
The company believes its fiber technology and U.S. manufacturing presence will help it capture a larger portion of this market. Its expanded capacity is intended to support customers seeking dependable domestic supplies of optical fiber and cable.
Prysmian’s broader data center business also includes electrical cable solutions and grid connections. These products help deliver power to data centers, which require substantial electricity to operate computing equipment and cooling systems.
The company also provides long-haul digital connections used to move information between data centers and communications networks. Its capabilities extend to submarine telecommunications infrastructure connecting systems across international markets.
The Molex agreement gives Prysmian a long-term commercial commitment supporting the planned manufacturing investment. The upfront payment is also expected to help align the companies’ capacity expansion plans with projected customer demand.
Prysmian intends to increase production while maintaining speed, quality and operating efficiency. The company believes long-term customer agreements can provide greater visibility as it scales the Digital Solutions division.
KEY QUOTES:
“This is a transformative moment for Prysmian’s Digital Solutions. Much like our agreements in the Transmission business, we can now benefit in two ways: first, together with our customers, including the important partnership with Molex, we are investing to meet demand. And secondly, we share a clear vision to the market about the buoyancy of demand over the long-term, and Prysmian’s clear ambition to compete in the digital space to create value as a front-runner, in both technology and scale.
The agreements and capacity investments strengthen our leadership in data centers, with every part of our business benefiting, from upgrading electricity grids and supplying electrical cable solutions to leveraging our expertise in long-haul digital connections and advancing our role in submarine telecom deployment.
We look forward to working with Molex as a long-term partner, and all our customers, in the years ahead as we deliver with speed, quality and efficiency to unlock the essential fiber and cables that are needed to sustain the huge investment that AI-driven infrastructure will need.”
Massimo Battaini, CEO of Prysmian
“We’re excited about this long-term agreement with Prysmian because it enables us to better support our mutual customers. For Molex, this represents a strategic expansion in the U.S., bringing increased capacity to support the growing demand for data center solutions with the quality and reliability our customers expect.”
Joe Nelligan, CEO of Molex
