Milan-based Prysmian Group, the largest manufacturer of cables and systems for the energy and telecommunications industries, has reached an up to 10-year agreement with Molex, a Koch Inc. company, worth up to € 5.5 billion (US$ 6.2 billion) to supply fiber optic cables for data centers through its Digital Solutions business.
According to a press release, the deal includes a € 550 million (US$ 629 million) upfront payment. It forms part of a broader set of new agreements and commercial initiatives with hyperscalers and data center infrastructure providers that Prysmian expects will generate cumulative revenue of over € 10 billion (US$ 11.4 billion) on an incremental basis up to 2035, compared against a 2025 baseline. The company anticipates these wider agreements will generate annual revenue of up to € 1.1 billion (US$ 1.26 billion) from 2031.
“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,” Massimo Battaini, Prysmian Chief Executive Officer, said in a press release.
“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 US, bringing increased capacity to support the growing demand for data center solutions with the quality and reliability our customers expect,” said Joe Nelligan, Molex Chief Executive Officer.
To support this growth, Prysmian will significantly expand its capacity for optical cables and fiber. The cable manufacturer said it will invest € 1.25 billion (US$ 1.43 billion) through 2031 for the capacity increase, which it expects will more than double its US fiber capacity from the current baseline. Battaini added that Prysmian will work with speed to develop the fiber and cables needed to support increased investment in AI-driven infrastructure including investing in its glass preforming stage at plants in the US and Europe.
Prysmian is one of three manufacturers of fiber and optical cables in the US and the only major domestic manufacturer in Europe. Its move into the “inside” data center space is expected to drive significant growth for the company, especially with over 970 planned colocation and hyperscale self-built data center projects in the United States, according to Arizton.