Prysmian Signs $6.3 Billion Deal with Molex to Supply Data Center Fiber Cables

Prysmian SpA announced on Monday, July 20, 2026, that it has signed an agreement with Molex, a subsidiary of Koch Inc., to supply optical cables for Molex's data centers. The contract is valued at €5.5 billion, equivalent to $6.3 billion, according to a Bloomberg Technology report citing the company's official statement. The deal is part of Prysmian's strategy to accelerate growth in its Digital Solutions segment, particularly in the data center sector. In a press release on its website, Prysmian stated that the agreement will support the expansion of digital infrastructure needed by cloud service providers and large technology companies. Molex, based in Lisle, Illinois, is a supplier of electronic components and connectivity solutions owned by Koch Industries.

The agreement covers the delivery of optical cables specifically designed to meet high bandwidth requirements in modern data centers, especially those supporting AI workloads and cloud computing. According to a Zawya report citing an official statement, the agreement is part of a broader series of commercial deals and initiatives with hyperscalers and data center infrastructure providers. This indicates that demand for optical cable infrastructure continues to rise alongside growing investment in AI. Prysmian, headquartered in Milan, Italy, has long been a major player in the energy and telecommunications cable market. With this contract, the company strengthens its position in the Digital Solutions segment, which includes optical cables, connectors, and network solutions for data centers.

The deal comes amid a surge in capital expenditure by large technology companies to build and expand data centers to support AI development. Hyperscalers such as Amazon Web Services, Microsoft Azure, and Google Cloud continue to increase their computing capacity, requiring high speed optical cable infrastructure. Bloomberg Technology reported that this contract is one of the largest in the optical cable industry for data centers. The multi billion dollar contract value reflects the scale of investment needed to build networks capable of handling massive data traffic. Prysmian did not provide further details on the contract duration or specific delivery volumes. However, the company stated that the agreement will contribute significantly to the Digital Solutions segment's revenue over the next few years.

Molex has not issued a separate comment on the agreement beyond the joint statement released by Prysmian. Koch Industries, Molex's parent company, is a conglomerate with investments in various sectors, including manufacturing, energy, and technology. The deal highlights the critical role of optical cables in the AI ecosystem. Without adequate cable infrastructure, data centers cannot transfer data at the speeds required to train AI models or run real time inference. Optical cables offer much higher bandwidth than traditional copper cables, making them the preferred choice for modern data centers. Prysmian has invested in optical cable production capacity in several countries, including Italy, the United States, and China.

With this contract, the company is likely to increase production at existing facilities or build new plants to meet demand. The agreement also reflects a consolidation trend in the digital infrastructure industry. Major cable companies such as Prysmian, Corning, and CommScope are competing for long term contracts with hyperscalers and data center providers. Multi billion dollar contracts like this provide revenue stability for suppliers and allow them to plan long term investments. From a market perspective, the deal does not directly affect Prysmian or Molex stock prices as there were no announcements regarding ownership changes or financing. However, industry analysts see the agreement as a strong indication that AI infrastructure demand will continue to grow in the coming years.

Prysmian is expected to begin delivering optical cables to Molex in the near future, although specific delivery schedules have not been disclosed. The company also did not specify whether the contract is exclusive or whether Molex can work with other suppliers. The deal adds to a long list of AI driven investments in the data center sector. Previously, various companies have announced plans to build new data centers in regions including the United States, Europe, and Asia. Optical cable infrastructure is a critical component in each of these projects. Prysmian stated that the agreement aligns with its strategy to become a leader in digital solutions for data centers.

With a product portfolio that includes optical cables, connectors, and cable management systems, Prysmian offers integrated solutions for data center operators. Going forward, Prysmian and Molex are likely to announce further details about the collaboration, including potential contract expansions or joint projects. The industry will continue to monitor how this deal affects the dynamics of the optical cable market and AI infrastructure overall.