Prysmian signs €5.5 billion Molex deal in data center push
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E-mailROME, July 20 (Reuters) - Italian cable maker Prysmian has signed a long-term agreement worth up to €5.5 billion ($6.4 billion) with Molex, an electronics company owned by U.S. group Koch, to supply fibre optic cables for data centers.
• The deal of up to 10 years includes a €550 million upfront payment, Prysmian said in a statement.
• Prysmian's shares rose more than 2%, with analysts saying the accord provided more certainty on the outlook for profit margins.
• Chief Executive Massimo Battaini described the investment and agreements as a "transformative moment" for Prysmian's Digital Solutions business.
• The company will invest €1.25 billion through 2031 to expand optical cable and fibre production, doubling its output capacity in the United States, where it is one of just three local producers in the sector.
• The investment will add 1,000 new jobs globally, of which 600 will be in the United States.
• Prysmian said the investments would support its push to position itself as a "one stop shop" for data centers.
• Already a provider of a wide range of cables required for data centers - from power cables to long-distance submarine ones - Prysmian will supply fibre optic cables used inside data centers under the deal.
• The agreement is part of a broader set of accords with hyperscalers and data center infrastructure providers, betting on AI-driven demand.
• These deals are expected to deliver as much as €1.1 billion in annual revenue from 2031, for a cumulative additional €10 billion in 2035 versus 2025, Prysmian said.
(Reporting by Giulia Segreti and Valentina Za; Editing by Gianluca Semeraro, Subhranshu Sahu and Susan Fenton)
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