Prysmian allocates €1.25 billion to expand US fiber capacity following €5.5 billion Molex data center agreement

Prysmian has secured a decade-long, €5.5 billion supply agreement with Molex to provide optical cables for data centers, backed by a €550 million upfront payment. Concurrently, the Milan-based cable manufacturer announced a €1.25 billion capital expenditure plan to more than double its United States fiber production capacity by 2031.

Prysmian has announced a strategic capital expenditure program of €1.25 billion to more than double its optical fiber production capacity in the United States by 2031. This expansion is anchored by a newly executed decade-long supply agreement with Molex, a subsidiary of Koch Inc., valued at up to €5.5 billion and supported by a €550 million upfront payment. According to official disclosures, this specific contract is part of a broader commercial pipeline with hyperscalers and data center infrastructure providers, projecting cumulative incremental revenues exceeding €10 billion through 2035 compared to the 2025 baseline.

This development marks a significant strategic pivot for traditional cable manufacturers, extending their market reach from external long-haul networks into the internal infrastructure of data centers. The move is primarily driven by structural modernization cycles, escalating demands for higher fiber density, and the rapid deployment of artificial intelligence-driven computing architectures that require superior energy efficiency and bandwidth. Consequently, this transition positions established fiber producers to capture value directly within the high-growth hyperscale facility supply chain.

From an industry and regional perspective, the initiative reinforces supply chain resilience in critical technology sectors. By expanding its glass preforming and optical cable manufacturing footprint, the company solidifies its status as one of the few remaining domestic fiber producers in the United States and the sole major domestic player in Europe. The capital injection is also projected to generate over 1,000 new jobs globally, with approximately 600 positions allocated to the United States, thereby aligning corporate expansion with regional economic development objectives.

For investors and market stakeholders, the agreement provides substantial long-term revenue visibility, with annual revenues from these data center initiatives expected to reach €1.1 billion by 2031. Prysmian is a Milan-headquartered global manufacturer of energy and telecommunications cable systems. It remains one of the few domestic producers of optical fiber and cables in both the United States and European markets, providing critical infrastructure for power transmission and digital connectivity. The company’s ability to secure upfront capital and multi-year contracts validates the sustained institutional demand for advanced digital connectivity solutions amid ongoing global infrastructure upgrades.