Prysmian Lands Long-Term €5.5 Billion Agreement With Molex for Data Center Growth

Prysmian signed a landmark €5.5 billion agreement with Molex on Monday, July 20, 2026. The Italian cable maker will supply optical cables for data center infrastructure. Molex, owned by privately held Koch Industries, committed to this decade-long partnership. The deal includes a €550 million advance payment to Prysmian upfront. This agreement forms part of Prysmian’s broader push into digital infrastructure. 

Related hyperscaler deals should generate over €10 billion in cumulative revenue by 2035. Prysmian expects up to €1.1 billion in additional annual revenue starting 2031. CEO Massimo Battaini called this “a turning point” for Prysmian’s Digital Solutions unit.

Prysmian’s €5.5 Billion Molex Agreement Explained

Prysmian’s agreement with Molex carries a maximum value of €5.5 billion. The contract runs for up to 10 years, providing long-term revenue visibility. Molex will pay Prysmian €550 million upfront as an advance payment. That upfront payment signals strong mutual commitment to expanding production capacity together.

Key terms of Prysmian’s agreement with Molex:

• The deal’s maximum value reaches €5.5 billion over its full term.
• Contract duration extends up to 10 years from signing.
• Molex will make an advance payment of €550 million to Prysmian.
• Molex operates as part of privately held US conglomerate Koch Industries.

Why Prysmian Is Investing in US Production Capacity

Prysmian will launch a significant capacity expansion program following this agreement. The company plans to more than double its US fiber production capacity. That expansion includes new preform manufacturing capabilities at American facilities. Prysmian aims to meet surging demand from hyperscalers and data center operators directly.

Prysmian’s Broader Data Center Revenue Targets

Prysmian expects its data center push to generate substantial incremental revenue through 2035. New agreements and commercial initiatives should add over €10 billion cumulatively by then. Annual revenue contributions could reach €1.1 billion starting from 2031 onward. These targets build on Prysmian’s existing strength in digital infrastructure solutions.

Prysmian’s data center strategy by the numbers:

• Cumulative incremental revenue target: over €10 billion by 2035.
• Annual revenue addition starting 2031: up to €1.1 billion.
• The Molex deal alone carries a maximum value of €5.5 billion.
• Prysmian’s Q1 2026 revenue already reached €5.218 billion, up 9.4%.

CEO Battaini’s Vision for Digital Solutions

Massimo Battaini described this period as a genuine turning point for Prysmian. He said the company invests alongside customers like Molex to meet demand. Battaini also emphasized sharing a clear vision of long-term demand strength. Prysmian aims to become the reference leader across digital infrastructure technology and scale.

Prysmian’s Recent M&A and Capacity Momentum

Prysmian has been actively expanding its data center footprint throughout 2026. CEO Battaini told Bloomberg in May the company was exploring a €4 billion acquisition. That potential deal would rival Prysmian’s 2024 Encore Wire acquisition in scale. Shareholders already approved a capital increase of up to 10% this year.

Other recent moves supporting Prysmian’s data center push:

• Prysmian unveiled a new 160-micron single-mode fiber cable in February.
• That fiber design targets higher density in confined data center spaces.
• Prysmian stock rose 6.37% in May on hyperscaler deal news.
• The company’s stock traded near its 52-week high of €131 in April.

How Prysmian Compares to Other Cable Makers

Prysmian competes globally against rivals like Nexans and Corning in fiber optics. Corning has similarly benefited from surging hyperscaler demand for optical connectivity. Nexans focuses more heavily on power cables than Prysmian’s digital infrastructure push. Prysmian’s scale, with 33,000 employees across 107 plants, gives it a manufacturing edge.

Final Thoughts

Prysmian’s €5.5 billion Molex agreement cements its position in data center infrastructure. Long-term visibility, an upfront payment, and expanding US capacity all support this strategy. The broader €10 billion revenue target through 2035 reflects serious confidence in AI-driven demand. Prysmian’s recent stock gains show investors rewarding this data center expansion clearly. Execution on capacity buildout will determine whether these ambitious targets get met.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.