Prysmian has signed an agreement worth up to €5.5 billion with Molex to supply optical cables for data centres, placing the Italian manufacturer deeper inside the infrastructure supporting artificial intelligence and cloud computing.
Announced on July 20, 2026, the contract can run for up to 10 years and includes a €550 million upfront payment. Molex, a US connectivity company owned by Koch Inc., will use Prysmian cables in fibre systems installed inside data centres.
The agreement is important because AI facilities require more than powerful processors. Thousands of chips, servers and storage systems must be connected by high-capacity networks capable of moving large amounts of data quickly.
What is included in the €5.5 billion agreement?
Prysmian will supply optical cables used inside data centres for a period of up to 10 years. Molex expects the arrangement to increase supply capacity, diversify sourcing and help it serve customers building or expanding AI-focused facilities.
The words “up to” are significant. The €5.5 billion figure is the contract’s maximum potential value, not revenue guaranteed on the announcement date.
Sales are expected to be recorded over time as Molex places orders and Prysmian delivers cables. The eventual total will depend on customer demand, construction activity and how long the arrangement remains in operation.
The €550 million upfront payment is part of the commercial agreement, but it should not be treated as proof that the entire contract value has already been secured as sales.
Why AI data centres need more fibre
Modern AI systems use large clusters of graphics processors and specialised accelerators. Those processors constantly exchange information with other chips, network switches and storage platforms.
Optical fibre provides the bandwidth and speed required to move that information through increasingly dense computing environments. Insufficient networking capacity can leave costly processors waiting for data and reduce the efficiency of the overall system.
The separate Nvidia and Corning optical-fibre partnership similarly demonstrates how major technology suppliers are securing components needed for larger AI clusters.
Prysmian plans a €1.25 billion expansion
Prysmian will invest €1.25 billion through 2031 to increase optical-fibre and cable production across the United States and Europe.
The programme will extend US manufacturing through several production stages, including glass preforms, which are used to make optical fibre. Prysmian intends to more than double its US fibre capacity from the existing baseline.
According to Reuters, Prysmian is one of only three local fibre producers in the United States. Expanding domestic manufacturing could shorten supply routes and improve availability for North American data-centre projects.
The investment is expected to create more than 1,000 jobs worldwide, including around 600 at US manufacturing sites. A detailed list of locations, job titles and hiring dates has not yet been published.
Who are Prysmian and Molex?
Prysmian is a Milan-based manufacturer of cable systems for electricity networks, telecommunications, industrial facilities and digital infrastructure. Its Digital Solutions division produces optical fibre, telecommunications cables and connectivity products.
Molex is headquartered in Lisle, Illinois, and belongs to privately owned Koch Inc. It supplies connectors, cable assemblies and fibre-optic systems for data centres, communications networks, vehicles and industrial equipment.
The partnership combines Prysmian’s manufacturing scale with Molex’s data-centre connectivity products and customer network.
What the €10 billion revenue target means
Prysmian expects its wider agreements and commercial initiatives with Molex, hyperscalers and other data-centre infrastructure providers to produce more than €10 billion in additional cumulative revenue by 2035, compared with its 2025 baseline.
The €10 billion projection does not come from the Molex contract alone. It covers Prysmian’s broader portfolio of data-centre agreements and planned commercial activity.
The programme could contribute up to €1.1 billion in annual revenue from 2031. These are company forecasts, not guaranteed results, and will depend on orders, production expansion and continued spending on AI infrastructure.
Hyperscalers are companies that operate very large cloud networks and data-centre fleets. Their investments include processors, cooling, power distribution, storage and networking. Growth in Nvidia’s data-centre networking operations illustrates why connectivity equipment is becoming as strategically important as computing chips.
Latest market response and business impact
Prysmian shares rose more than 2% following the announcement, with analysts pointing to improved visibility over future demand and profit margins.
The company already supplies power cables and long-distance connections for data-centre infrastructure. The Molex agreement extends its presence into the “inside data centre” market, where optical cables connect equipment within individual facilities.
Chief Executive Massimo Battaini described the agreements and investment programme as a transformative development for Digital Solutions. Prysmian wants to offer a broader range of power and connectivity products to data-centre customers rather than supplying only one part of a project.
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Risks and what to watch next
The main indicators will be confirmed orders, construction progress at US and European plants, job creation and margins as production increases.
Potential risks include slower AI data-centre construction, changing networking standards, manufacturing delays and expansion costs exceeding expectations. These factors could prevent the agreement from reaching its maximum value.
Full contract targets and investment details are available in Prysmian’s official July 20 announcement.
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