Prysmian inks €5.5bn Molex deal, targets €10bn data centre revenue
Italian cable maker Prysmian has secured a €5.5 billion supply agreement with Molex, underpinning a broader strategy to capture over €10 billion in data centre revenue by 2035 amid surging artificial intelligence demand.
Prysmian has agreed to a contract worth up to €5.5 billion with Koch-owned electronics firm Molex to supply optical cables for data centres. The agreement spans up to a decade and includes an immediate €550 million upfront payment. This anchors the Italian manufacturer's aggressive push to capture the digital infrastructure build-out.
The Molex deal is the centerpiece of a broader suite of commercial agreements Prysmian has secured with hyperscalers and data centre operators. Taken together, these contracts are forecast to deliver more than €10 billion in additional cumulative revenue by 2035 compared to 2025 levels. From 2031 onward, this specific pipeline is expected to contribute as much as €1.1 billion in annual revenue to the group.
Meeting this demand requires substantial manufacturing expansion. Prysmian will invest €1.25 billion through 2031 to build out its optical cable and fibre production capabilities across the United States and Europe. The most critical element of this capital deployment is a plan to more than double the company's fibre capacity on American soil. This localized production is essential to satisfying the rapid construction timelines of modern data centre campuses.
The industrial ramp-up will translate into significant hiring, adding more than 1,000 positions globally. Approximately 600 of those roles will be based in the U.S., reflecting the regional focus of the physical expansion. Chief Executive Massimo Battaini described the combination of the new agreements and the capital expenditure programme as a "transformative moment" for Prysmian's Digital Solutions business.
Investor implications
For market participants, the financial structure of these agreements offers a departure from the typical volatility of telecom equipment cycles. Securing a €550 million upfront payment guarantees immediate returns on the planned capital expenditure. This substantially lowers the financial risk associated with the €1.25 billion expansion programme over the next seven years.
Furthermore, the long-term duration of the Molex pact effectively locks in predictable cash flows well into the 2030s. By tethering its growth directly to the capital expenditure cycles of hyperscalers upgrading their infrastructure for artificial intelligence, Prysmian is shielding its digital division from short-term fluctuations in traditional telecommunications spending. The move confirms that the hardware supply chain for AI is moving from generalized manufacturing to highly specialized, localized production.
