Home / Business and Economy / Sterlite Tech Secures $1.11B AI Data Center Contract
Sterlite Tech Secures $1.11B AI Data Center Contract
22 May
Summary
- Sterlite Tech's subsidiary received a $1.11 billion award for optical connectivity products.
- The contract spans FY27 to FY29, supporting AI data center infrastructure in the US.
- A reciprocal risk-sharing framework is included for potential demand or supply shortfalls.
Sterlite Technologies Ltd announced a major development on Friday, May 22, 2026, with its subsidiary receiving a Product Award Letter (PAL) from a hyperscale partner. This award is for the multi-year supply of optical connectivity products, with a potential value estimated at $1.11 billion.
The agreement is set to run until March 2029 and will specifically support the construction of AI data center infrastructure in the United States. This contract covers supply across fiscal years 2027 to 2029, with purchase orders to be issued periodically.
Further enhancing the agreement, a reciprocal risk-sharing framework has been established. This framework outlines mutual capped financial liabilities for both Sterlite Technologies and the hyperscale partner, addressing potential demand shortfalls or supply capacity issues.
Ankit Agarwal, Managing Director of STL, emphasized the strategic importance of this contract, stating, "STL, through its optical solutions, will support building AI data center infrastructure in the US for this hyperscaler. We are enabling connectivity backbone for the AI data centers."
This international contract is not considered a related party transaction, as the promoter or promoter group has no interest in the awarding entity. The news coincided with a 5.00% increase in Sterlite Technologies' shares, closing at ₹441.40 on the BSE.
