STL Subsidiary Wins Multi-Year Contract Valued at Over $1 Billion for AI Data Center Build-outs
Sterlite Technologies Limited (STL), a connectivity solutions provider specializing in optical fibers, optical fiber cables, and data center networks, announced that one of its subsidiaries has secured a multi-year Product Award Letter (PAL) from a major hyperscale partner. This contract involves the supply of optical connectivity products for building advanced AI Data Centers in the United States.The total potential value of the contract over its entire tenure is estimated at approximately USD 1.11 billion, based on current selling prices for connectivity products.
The awarded contract spans multiple financial years, with allocations planned from FY27 through FY29. The agreement outlines that the purchase orders will be released periodically during the contract period. The framework establishes a reciprocal risk-sharing model, defining mutual, capped financial liabilities for both STL and the hyperscale partner in the event of demand shortfalls or supply capacity shortages. The contract is slated for execution up to March 2029.
Ankit Agarwal, Managing Director at STL, stated, "Under this agreement, STL, through its optical solutions, will support building AI data center infrastructure in the US for this hyperscaler. We are enabling the connectivity backbone for the AI data centers."
STL has highlighted its vertical integration capability, offering "glass to data center" solutions. The company’s internal research and development has enabled it to introduce novel fiber optic designs and build AI-ready networks, driven by co-creation with customers.
STL recently launched its STL Neuralis AI Data Center Portfolio, which includes advanced solutions tailored for high-density data requirements:
- AI Whitespace: Utilizing ultra-high-density, pre-terminated fiber cables, Neuralis supports the massive fiber counts essential for GPU clusters.
- High-Speed Data Center Interconnect (DCI): The Celesta IBR cable series consists of ultra-compact cables supporting up to 6,912 fibers.
STL continues to provide end-to-end advanced connectivity solutions for building AI-ready infrastructure across various sectors, including FTTx, Rural, Enterprise, and Data Centre networks.
STLTECH Stock Price Movement
Today, Sterlite Technologies Limited shares edged higher to close at ₹441.15, gaining 5.00% as the equity finished strongly in post-market trading. The stock recorded a total volume of 2.37 million shares while achieving a significant milestone by hitting its 52-week high of ₹441.15.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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