Sterlite Technologies said its subsidiary has received a product award letter (PAL) from a hyperscale partner for the multi-year supply of optical connectivity products. The total potential value of the contract is estimated at approximately $1.11 billion based on prevailing selling prices. The allocation covers optical connectivity product supply across financial year 2026-27 (FY27) to FY29, with purchase orders to be released periodically over the contract period.
Under the agreement, Sterlite Technologies Limited (STL) will support the build-out of artificial intelligence data centre infrastructure in the United States for the hyperscaler through its optical solutions, providing the connectivity backbone for the facilities.
The contract includes a reciprocal risk-sharing framework that defines capped financial liabilities for both parties in the event of demand shortfalls or supply constraints. Additionally, the agreement is international in nature and is scheduled for execution through to March 2029.