Prysmian Signs €5.5 Billion Molex Deal to Supply Fibre Optic Cables for Data Centers
The 10-year contract includes a €550 million upfront payment and covers optical cables running inside data centers - a segment separate from Prysmian's existing power and submarine cable business.
Prysmian, the Italian cable maker, signed a 10-year supply agreement with Molex on July 20 worth up to €5.5 billion ($6.4 billion) to provide fibre optic cables for data centers. The Prysmian Molex deal includes a €550 million upfront payment and covers cables running inside data center facilities - a product line separate from Prysmian's existing power cable and long-distance submarine cable business. Prysmian shares rose more than 2% on the news. Molex is owned by U.S. conglomerate Koch Industries.
Maximum Value Is €5.5 Billion Over 10 Years - With €550 Million Locked In Up Front
Maximum deal value across the 10-year term is €5.5 billion. Prysmian secured a €550 million upfront payment that locks in near-term revenue visibility - analysts cited the deal as providing more certainty on profit margin outlook than the company had previously offered, which explains Monday's 2% share price move. Molex is a Koch-owned electronics and connectivity company with an established data center customer base; the contract positions Prysmian as the dedicated supplier of fibre optic cables running inside those facilities.
Prysmian Will Double US Optical Cable Capacity With €1.25 Billion Investment
Alongside the Molex deal, Prysmian announced €1.25 billion in capital investment through 2031 to expand optical cable and fibre production - doubling output capacity in the United States, where Prysmian is one of just three domestic producers in this cable segment. Over 1,000 new jobs will come from the expansion globally. Six hundred of those land in the US. CEO Massimo Battaini described the combined investments and agreements as "a transformative moment" for the company's Digital Solutions business, betting on AI-driven demand from hyperscalers building at multi-gigawatt scale.
Molex Is One of Several Hyperscaler Agreements - Prysmian Targets €1.1 Billion Annual Revenue by 2031
Prysmian said the Molex deal forms part of a broader set of agreements with hyperscalers and data center infrastructure providers. Combined, those deals are expected to deliver €1.1 billion in annual revenue from 2031 and add a cumulative €10 billion in revenue by 2035 compared with 2025. No single buyer name was disclosed beyond Molex. Long-term supply commitments like this - similar in scale to Apple's $30 billion deal with Broadcom to build chips on US soil - show hyperscalers are now locking in physical infrastructure suppliers the same way they have locked in semiconductor manufacturers.
Prysmian frames the Molex agreement as one piece of a "one stop shop" strategy for data centers - its existing portfolio covers power cables and long-distance submarine cables, with optical fibre for inside-facility wiring now layered on top. Cable is now infrastructure. Hyperscalers sourcing optical fibre through decade-long committed contracts represents the same supply chain logic that pushed Micron's AI memory revenue to record highs - the physical layer underneath AI is being locked in, and Prysmian is betting it owns the fibre portion of that stack.
