Prysmian SpA signed a long-term agreement worth up to €5.5 billion with Molex to supply optical cables for data-center infrastructure on Monday [1, 2].
The deal signals a massive industrial bet on the continued expansion of artificial intelligence. As AI models require unprecedented computing power, the physical layer of connectivity — the cables that link servers and data centers — has become a critical bottleneck in global tech scaling.
Based in Rome, the Italian cable maker is using the partnership to expand its footprint in the data-center market [1]. Molex, a subsidiary of Koch Inc., will utilize the optical cables to build out the high-capacity infrastructure necessary for modern AI workloads [2].
The financial scope of the agreement is estimated at €5.5 billion, which is approximately $6.3 billion [2]. This specific contract is part of a larger strategic push by Prysmian to capture the growing demand for specialized connectivity solutions. The company said that a broader set of deals in this sector could generate more than €10 billion in additional cumulative revenue [1].
Industry analysts said that the surge in AI investment is driving a shift toward optical connectivity, which offers higher speeds and lower latency than traditional copper wiring. By securing a long-term supply agreement with a major player like Molex, Prysmian aims to stabilize its pipeline of high-value projects during a period of rapid infrastructure deployment [1, 2].
The announcement comes as tech giants continue to invest heavily in the physical facilities required to house thousands of GPUs. This agreement ensures that the hardware layer can keep pace with the software demands of the AI era [2].
“The deal signals a massive industrial bet on the continued expansion of artificial intelligence.”
This agreement highlights a pivot in the AI boom from software and chip development toward the physical infrastructure layer. By committing billions to optical cabling, Prysmian and Molex are preparing for a long-term cycle of data center construction. The scale of the investment suggests that the industry expects AI-driven demand for high-bandwidth connectivity to remain high for years, rather than being a short-term spike.
