- Prysmian will invest $1.25B to more than double U.S. fiber and optical cable manufacturing capacity
- AI data center growth is driving a new fiber demand wave beyond traditional broadband and BEAD deployments
- U.S. fiber manufacturing is gaining strategic importance as build pipelines, tariffs, and geopolitics reshape supply chains
Cable and fiber supplier Prysmian is going big – really big – with its U.S. manufacturing operation, spending $1.25 billion to increase capacity at facilities in three states. The move will more than double its total output, underscoring the growing importance of fiber and how geopolitical forces are reshaping production footprints.
Most of the money ($1.02 billion) will go toward doubling fiber production capacity at Prysmian’s Claremont, North Carolina campus. It also plans to spend $100 million to double the footprint of its Jackson, Tennessee facility and $80 million expanding capacity for its FlexRibbon cable at its Lexington, South Carolina plant. Another $48 million will go toward beefing up optical cable manufacturing at the Claremont campus.
All told, Prysmian said it expects the expansions to create 615 new jobs.
The company is one of three major fiber manufacturers in the U.S., competing with Corning and CommScope. In 2023, CommScope spent more than $60 million expanding its manufacturing presence in North Carolina and announced further expansion plans in 2024.
But earlier efforts to boost capacity were largely focused on meeting broadband demand. Now, work is focused on serving a tidal wave of fiber demand for data center buildouts.
Last month, Prysmian inked a multi-billion-dollar deal to provide industry vendor Molex with data center fiber products. That deal followed on the heels of Corning’s announcement that it had partnered with Nvidia and planned to build three new manufacturing plants in North Carolina and Texas. Corning also has major fiber supply deals with Meta, Microsoft, and Amazon.
Spotlight on the U.S.
The focus on building up manufacturing capacity in the U.S. is a reflection of both widespread data center development in the country and increased government scrutiny of materials produced abroad.
Broadband providers receiving funding from the Broadband Equity, Access and Deployment (BEAD) Program already have to comply with Build America, Buy America rules, which require that certain materials be produced in the U.S.
Data center builders aren’t subject to these rules. But shipping and other costs (like tariffs) could become a huge problem for vendors lacking enough domestic manufacturing capacity. That’s because the U.S. accounts for roughly half of the 1,500 data center projects currently in the global pipeline, according to Synergy Research Group.
Furthermore, U.S. officials in various government positions are increasingly targeting foreign-made components for bans. For instance, the FCC recently shut the door on Wi-Fi routers made in other countries. The White House is also reportedly considering a ban on Chinese-made optical transceivers, a move analysts have already warned would be a huge blow to AI infrastructure development efforts.
While fiber hasn’t found itself in the government’s sights yet, it’s clear vendors aren’t taking any chances.
Read more about fiber vendors here:
Corning to build 3 new optical plants in the U.S. with a little ($500M) help from Nvidia
Amazon and Corning announce multi-billion-dollar deal for fiber supply
The Five Nine: Fiber vendors torn between data center expansion and BEAD funding
What you need to know about Corning’s new $6B Meta deal
Here’s how big the fiber shortage really is
AWS wants more hollow core fiber than it can get
Facts Only
* Prysmian will invest $1.25 billion to increase U.S. fiber and optical cable manufacturing capacity.
* This investment targets facilities in three states.
* The total output from these expansions will more than double existing capacity.
* $1.02 billion of the investment is designated for doubling fiber production capacity at the Claremont, North Carolina campus.
* $100 million will be spent to double the footprint of the Jackson, Tennessee facility.
* $80 million will be spent expanding FlexRibbon cable capacity at the Lexington, South Carolina plant.
* $48 million will go toward beefing up optical cable manufacturing at the Claremont campus.
* The expansions are expected to create 615 new jobs.
* Prysmian is one of three major U.S. fiber manufacturers, competing with Corning and CommScope.
* A multi-billion-dollar deal was inked providing data center fiber products to Molex.
Executive Summary
Prysmian is investing $1.25 billion to more than double its U.S. fiber and optical cable manufacturing capacity across facilities in three states. The majority of this investment, $1.02 billion, will be allocated to doubling fiber production capacity at the Claremont, North Carolina campus. Additional spending includes $100 million for the Jackson, Tennessee facility expansion and $80 million for expanding FlexRibbon cable capacity at the Lexington, South Carolina plant, plus $48 million for optical cable manufacturing at Claremont. These expansions are projected to create 615 new jobs.
The demand for fiber is increasingly driven by growth in AI data center buildouts, moving beyond previous focuses on traditional broadband and BEAD deployments. This shift highlights the strategic importance of U.S. fiber manufacturing amidst evolving geopolitical and supply chain dynamics. The push for domestic capacity is supported by the need to mitigate risks associated with international sourcing, as evidenced by government scrutiny of materials and potential bans on foreign components.
Full Take
The narrative illustrates a convergence where technological demand—specifically AI data center expansion—is directly forcing geopolitical recalibration of industrial supply chains. The shift from meeting baseline broadband demands to servicing the complex needs of hyperscale infrastructure signals that physical manufacturing capacity is becoming a critical strategic asset, transcending mere commercial interests and entering the realm of national security concerns regarding material control. The focus on U.S. build-up is not solely about market competition but is framed by regulatory risk; mechanisms like Build America, Buy America create tangible requirements for domestic sourcing in infrastructure projects, suggesting that economic incentives are merging with geopolitical imperatives to reshape production footprints.
The tension arises between established commercial expansion and the emergent state interest. Fiber vendors are navigating a landscape where physical supply chain resilience is now inseparable from regulatory compliance and national security posture. The implied pattern suggests that when global supply chains are stressed by geopolitical factors, domestic industrial capacity becomes a high-leverage point for policy intervention, whether through subsidies or restrictions on foreign materials.
What underlying assumption drives the immediate action by manufacturers versus the slower pace of governmental regulation? What are the long-term costs if this capacity build-up is successful in creating a self-sufficient strategic ecosystem, and what risks remain if the market demand shifts unexpectedly away from data center infrastructure development?