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.
