Molex signs up to 10-year fiber optic supply deal with Prysmian for U.S. data center expansion

Molex has entered a long-term supply agreement with cable maker Prysmian to expand U.S. optical fiber production capacity, aiming to meet rising demand from AI-driven data center buildouts and add over 600 domestic manufacturing jobs.

Molex, a U.S.-based connectivity and electronics manufacturer, has entered into a supply agreement with Prysmian, a global cable solutions manufacturer, under which Prysmian will supply optical cables to Molex for a term of up to ten years, according to a company statement. The arrangement is intended to secure fiber optic connectivity supply for data center customers amid a sharp rise in demand tied to artificial intelligence infrastructure buildouts.

As part of the agreement, Prysmian will expand optical cable and fiber production across its U.S. manufacturing plants, including glass preform manufacturing, effectively doubling the company's domestic fiber production capacity. The expansion is expected to create more than 1,000 jobs globally at Prysmian, including approximately 600 positions across its U.S. manufacturing operations. Molex said the move forms part of its broader U.S. expansion strategy and is one component of a wider global plan to scale fiber cable supply chains.

The agreement addresses a supply-side constraint that has emerged as data center operators accelerate infrastructure investment to support AI workloads. Fiber optic cabling is a critical component in data center interconnects, and capacity bottlenecks in optical fiber and cable manufacturing have been cited industry-wide as a risk to the pace of new facility construction and network upgrades. By securing dedicated, long-term supply from one of the largest cable manufacturers globally, Molex aims to reduce exposure to potential shortages and lead-time volatility as customer orders scale.

For the broader data center and telecommunications supply chain, the deal signals continued consolidation of sourcing relationships between component makers and raw material or cable suppliers, as hyperscalers and colocation operators push vendors to guarantee capacity years in advance. It also reflects a wider trend of reshoring and expanding fiber and cable manufacturing capacity within the United States, partly in response to both AI-related demand growth and broader supply chain resilience considerations following recent years of global logistics disruption.

For businesses and investors tracking the data center supply chain, the agreement points to sustained capital investment in upstream manufacturing capacity as a bottleneck-easing measure, which could support more predictable build-out timelines for hyperscale and enterprise data center projects. It also underscores the strategic value being placed on optical connectivity components as AI infrastructure spending continues to expand, with implications for suppliers, contractors and equipment makers operating across the data center value chain.

Molex is a global electronics and connectivity solutions manufacturer headquartered in Lisle, Illinois, with operations in more than 40 countries, serving industries including data centers, telecommunications, automotive, aerospace, defense and healthcare. Prysmian is a global manufacturer of cables and connectivity systems for the energy and telecommunications sectors, with manufacturing operations spanning multiple countries including the United States.