Prysmian to accelerate data center growth in Digital Solutions thanks to major capacity increase and hyperscaler agreements
- Prysmian signs a 10-year agreement with Molex, a Koch Inc. company, worth up to €5.5 billion, supported by a €550 million upfront payment
- €10 billion of cumulative Revenues with hyperscalers and data center infrastructure providers, with up to €1.1 billion on a yearly basis from 2031
- Major expansion of fiber and optical cable production: more than doubling fiber capacity in the United States
Prysmian has signed an up to €5.5 billion long-term agreement, which includes a €550 million upfront payment, with Molex, part of the large private U.S. company Koch Inc., for a period of up to ten years, for the supply of optical cables to be deployed inside data centers.
The deal with Molex is part of an overall set of new agreements and commercial initiatives with hyperscalers and data center infrastructure providers, foreseen to bring in an additional cumulative value of over €10 billion on an incremental basis up to 2035, versus the 2025 baseline. This includes up to €1.1 billion of Revenues on a yearly basis from 2031.
To support this growth, Prysmian will implement a significant expansion in capacity for optical cables and fiber, which will more than double fiber capacity in the U.S. versus the current baseline.
The capacity expansion and agreements build on Prysmian’s data center strengths in both digital and energy connections and will now bring the company’s fiber and cables into the so- called ‘inside’ data center space. This will be a driver of significant growth in the years ahead thanks to structural modernization cycles to enhance performance and energy efficiency, AI- driven architecture shifts and upgrades to fiber density. These long-term trends are an opportunity to utilize Prysmian’s technical know-how as a leader in fiber technology, as well as its U.S. manufacturing footprint.
Capacity increase to transform the scale of Prysmian’s Digital Solutions business
Prysmian will implement a capacity increase to extend production of optical cables and fiber – including the glass preforming stage, for plants in the U.S. and Europe. The investment, which will more than double fiber capacity in the United States, will build on Prysmian’s position as one of just 3 U.S. manufacturers of fiber and optical cables, while in Europe, will support Prysmian’s position as the only major domestic player. Prysmian will allocate €1.25 billion up to 2031 for this capacity increase, and as a result of the investment over 1000 jobs will be created worldwide, 600 of which will be in the U.S..
Massimo Battaini, CEO Prysmian: “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.”
Joe Nelligan, CEO Molex: “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.”
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