Prysmian Signs €5.5 Billion Deal to Acquire Molex in Major Data Center Infrastructure Play

Italian cable and connectivity giant Prysmian has announced a €5.5 billion agreement to acquire Molex, a U.S.-based electronic components manufacturer, in a move that underscores the escalating demand for high-performance infrastructure powering the global data center boom. The deal, which is expected to close by the end of 2026 pending regulatory approvals, marks one of the largest acquisitions in the sector this year.

Molex, headquartered in Lisle, Illinois, is a leading supplier of connectors, cables, and interconnect systems used extensively in data centers, telecommunications, and industrial automation. By integrating Molex’s product portfolio, Prysmian aims to strengthen its position across the entire data center value chain—from power cables to high-speed data transmission solutions. The combined entity will serve hyperscale cloud providers, colocation operators, and enterprise data centers, particularly as AI workloads and cloud computing drive unprecedented demand for bandwidth and energy efficiency.

The acquisition comes at a time when data center operators are racing to upgrade infrastructure to handle the massive computational requirements of generative AI and machine learning models. According to industry analysts, the global data center interconnect market is projected to grow at a compound annual growth rate of over 15% through 2030, fueled by the expansion of 5G networks, edge computing, and hyperscale data centers. Prysmian’s move to acquire Molex is seen as a strategic bet on this long-term trend, enabling the company to offer end-to-end solutions that address both power delivery and data transmission challenges.

Prysmian CEO Valerio Battista emphasized the strategic rationale in a statement, saying, “The combination of Prysmian and Molex creates a unique player capable of meeting the most demanding requirements of the digital infrastructure market. Molex’s expertise in high-speed connectivity and miniaturization perfectly complements our leadership in cable systems.” The deal is expected to generate annual cost synergies of approximately €200 million by the third year post-closing, driven by procurement efficiencies and cross-selling opportunities.

Industry observers note that the acquisition highlights a broader consolidation trend in the data center supply chain, as companies seek to scale up and diversify their offerings amid supply chain constraints and rising demand. For Prysmian, which already supplies power cables to major data center projects in Europe and Asia, adding Molex’s connectivity and optical solutions could provide a competitive edge against rivals like Belden and Amphenol. The transaction is structured as a cash-and-stock deal, with Prysmian financing part of the purchase through a combination of debt and existing cash reserves.