Fujikura Ltd., a manufacturer of cables for data centers, is a leader in the Nikkei 225 index, with its shares increasing by over 400% this year. The company also operates a factory in Ukraine that produces electrical equipment for the automotive industry.
Fujikura serves as an example of a company acting as a "pick and shovel" supplier for the development of artificial intelligence (AI) infrastructure. Tech companies and utility services are actively investing in the construction of data centers, modernization of energy grids, and enhancement of communication systems to meet AI demands. These initiatives will require at least $1 trillion. The rapid growth of the industry has surprised even Fujikura, which is involved in this large-scale process.
“The demand for data centers has surged since around 2022,” said Kazuhito Idzima, CFO of Fujikura. “At that time, we didn’t fully grasp it, but this year it became clear that it’s all about artificial intelligence.”
Fujikura, one of whose largest clients is Apple Inc., manufactures optical fiber cables. According to Idzima, the company's products feature the smallest diameter in the industry, allowing them to be used in tight spaces without the need for additional tunneling.
More than 70% of Fujikura's revenue comes from international markets, with approximately 38% from the United States. McKinsey & Company forecasts that the capacity of global data centers will grow by 33% annually through 2030.