Applied Optoelectronics Expands Sugar Land Facility to $300M

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Applied Optoelectronics, a Houston-area tech manufacturer, has announced that it is doubling its planned investment in its Sugar Land, Texas facility to $300 million. The expansion will allow the company to become the lead supplier of data center transceivers for the growing AI industry.

Why it matters

The expansion of Applied Optoelectronics' Sugar Land facility is a significant investment in the local economy and highlights the growing demand for specialized technology to support the rapid growth of AI and data centers. This investment could lead to new job opportunities and cement Sugar Land's status as a hub for tech manufacturing.

The details

Applied Optoelectronics, a manufacturer of optical components and subsystems, has decided to double its planned investment in its Sugar Land facility from $150 million to $300 million. The expansion will allow the company to increase production capacity for its data center transceiver products, which are in high demand from the growing AI industry.

• Applied Optoelectronics announced the expansion plans on February 10, 2026.

What’s next

The company plans to complete the $300 million expansion of its Sugar Land facility by the end of 2027.