STL (Sterlite Tech) bags AI data centre connectivity deal worth over ₹10,650 crore from hyperscaler

Sterlite Technologies Ltd (STL) has secured a major multi-year Product Award Letter (PAL) from a hyperscale customer for the supply of optical connectivity products that will support artificial intelligence-focused data centre infrastructure in the United States.

The contract, awarded to one of STL’s subsidiaries, has a potential value of nearly USD 1.11 billion — translating to approximately ₹10,656 crore at current exchange rates of around ₹96 per US dollar. The engagement is scheduled to run until March 2029, with purchase orders expected to be executed periodically between FY27 and FY29.

The order is significant not only because of its size, but also because it places STL deeper into the rapidly expanding AI infrastructure ecosystem, where hyperscalers are investing billions of dollars into next-generation data centres built for high-performance AI computing workloads.

Unlike conventional cloud infrastructure, AI data centres require far denser fibre connectivity, ultra-low latency communication, and significantly higher bandwidth to support large GPU clusters and AI model training systems. This has triggered strong demand globally for advanced optical networking solutions.

STL said the agreement covers optical connectivity products tailored to customer specifications and includes a reciprocal risk-sharing mechanism in the event of supply shortages or demand fluctuations. The company added that the supplies would be used for AI data centre build-outs in the US market.

The development also aligns with STL’s broader transformation from being viewed primarily as an optical fibre manufacturer to becoming an integrated “glass-to-data-centre” connectivity solutions provider.

Recently, the company introduced its STL Neuralis AI Data Center portfolio, aimed specifically at hyperscale AI deployments. The portfolio includes ultra-high-density fibre systems, pre-terminated cabling solutions, and AI-ready connectivity infrastructure designed to handle massive fibre counts required in modern AI data centres.

According to the company, its Celesta IBR cable series can support up to 6,912 fibres in compact form factors, helping hyperscalers optimise space and improve network efficiency in AI-driven facilities.

Managing Director Ankit Agarwal said the partnership demonstrates STL’s capability to support next-generation AI infrastructure globally and strengthen the connectivity backbone powering future digital ecosystems.

The order comes at a time when global AI infrastructure spending is witnessing a sharp acceleration, driven by rising investments from hyperscalers, cloud service providers, and enterprise AI platforms building large-scale compute infrastructure worldwide.

Disclaimer: This article is based on company filings and publicly available information. It is intended solely for informational purposes and should not be construed as investment advice.