Amazon Taps Prysmian and Rio Tinto for Low-Carbon Data Center Cables. What Does it Mean for Investors?

Prysmian is finding another way into the data-center buildout, and this time the story isn’t about fiber. The Italian cable maker has partnered with Rio Tinto (NYSE:RIO) to supply electrical cables made with low-carbon aluminum for an Amazon (NASDAQ:AMZN) data center in Ohio. The cables will use aluminum produced with ELYSIS inert-anode technology, which Prysmian says eliminates direct greenhouse-gas emissions from the aluminum-smelting process and releases pure oxygen instead.

For Prysmian investors, the project’s significance lies in the fact that the technology Prysmian and Rio Tinto were developing earlier this year is now being put to use in a data-center project for Amazon.

Bull Case

The Amazon project gives Prysmian’s work with ELYSIS something it didn’t have when the company announced its expanded collaboration with Rio Tinto in March, which is a specific data-center application….