Prysmian signs €5.5 billion Molex deal in data centre push

(Corrects to say Prysmian will generate more than €10 billion in additional cumulative revenue from a broader set of deals and initiatives, not only the Molex agreement, in third bullet.)

ROME, July 20 (Reuters) – Italian cable maker Prysmian said on Monday it had signed a long-term agreement worth up to €5.5 billion ($6.4 billion) with Molex, a Koch-owned electronics company, as it stepped up its push into the fast-growing data centre market.

• The deal runs for up to 10 years and includes a €550 million upfront payment and covers the supply of optical cables used inside data centres, Prysmian said in a statement.

• The agreement is part of a broader set of deals and commercial initiatives with hyperscalers and data centre infrastructure providers.

• These deals could generate more than €10 billion in additional cumulative revenue by 2035 compared with 2025.

• The initiatives are expected to deliver as much as €1.1 billion in annual revenue from 2031.

• To support demand driven by AI infrastructure and data centre upgrades, Prysmian will more than double fibre capacity in the U.S.

• The company will invest €1.25 billion through 2031 to expand optical cable and fibre production in the U.S. and Europe.

• The plans will create more than 1,000 jobs globally, including about 600 in the U.S.

• Chief Executive Massimo Battaini described the investment and agreements as a “transformative moment” for Prysmian’s Digital Solutions business.

(Reporting by Giulia Segreti; Editing by Gianluca Semeraro and Subhranshu Sahu)