Prysmian Signs €5.5 Billion Fibre Deal with Molex to Wire AI Data Centres
The Italian cable giant will more than double its US fibre capacity, and Molex is paying €550 million upfront to lock in the supply.
The Deal:
Prysmian has signed a €5.5 billion, 10-year agreement with Molex, the Koch Industries-owned connector and cable maker, to supply optical cable for use inside AI data centres.
Unusual Upfront Payment:
Unusually for a supply deal of this size, Molex is putting €550 million on the table upfront, providing Prysmian with financial certainty in a market where most commitments come as forecasts.
The Need for Optical Cable:
The cabling that shuttles data between racks and chips has become a constraint on AI buildout, leading to billions spent by companies like Nvidia on photonics to overcome copper’s limitations. Prysmian addresses the other end of the cable, focusing on the fibre that carries traffic once it leaves the chip.
The Agreement:
Prysmian’s Digital Solutions arm will supply optical cable to Molex under the agreement, catering to the growing demand as more AI hardware is installed. Prysmian anticipates up to €10 billion in cumulative additional revenue from hyperscalers and data centre providers through 2035, with up to €1.1 billion annually from 2031.
Investment and Jobs:
To meet this demand, Prysmian is allocating €1.25 billion for capacity investment through 2031, doubling its optical fibre production capacity in the United States. This expansion will create over 1,000 jobs worldwide, with 600 in the US, across optical cable and fibre production facilities on both sides of the Atlantic.
Sovereignty and Growth:
At a time when Europe is aiming to establish its own compute base and researchers warn about potential stalls due to data centre supply constraints, Prysmian positions itself as a key supplier to this expansion. The company caters to the hyperscaler capital spending boom, driven by AI infrastructure modernisation, energy efficiency pressures, and increasing fibre density inside data halls.
Prysmian’s Role:
Prysmian sees itself as a vital pick-and-shovels supplier to this growth rather than a site builder, contributing to the physical infrastructure needed for sovereign AI ambitions.