•Molex has agreed to buy optical cables from Prysmian for up to ten years under a contract worth up to €5.5 billion
•Prysmian plans to invest €1.25bn by 2031 and more than double its US fibre-production capacity
The fact
Molex has signed an agreement worth up to €5.5 billion for Prysmian to provide optical cables for data centres. The deal could run for up to ten years and includes a €550 million upfront payment, Prysmian said on 20 July.
Prysmian plans to invest €1.25 billion by 2031 to expand optical-cable and fibre production in the US and Europe. The programme includes glass-preform production and is intended to more than double the company's US fibre capacity. Prysmian said the investment could create more than 1,000 jobs worldwide, including 600 in the US.
The assessment
Prysmian is preparing to expand production with Molex already committed as a long-term customer. The €550 million upfront payment funds the investment before the additional capacity is operating—a structure that signals how tight fibre supply has become. Molex locks in guaranteed capacity; Prysmian gains the financial backing to build it.
The expansion extends into glass-preform production, the earliest stage of optical-fibre manufacture. That takes Prysmian beyond finished cable into the raw material itself, though the new capacity still has to be built and commissioned.
For BTW readers, the deal is a marker of how data-centre demand is reshaping the fibre supply chain. Hyperscalers are signing long-term supply commitments and paying upfront to secure the infrastructure they need—pushing investment risk upstream to manufacturers. Prysmian, which is also planning a US listing, is positioning itself as the supplier of choice for the American build-out.
What to watch
Watch for Prysmian to identify the plants involved and publish construction or production milestones. Annual purchase volumes, capacity allocated to Molex and the start of commercial deliveries would show when the planned expansion begins supplying Molex’s data-centre business.