3M and Amazon Web Services expand optical link partnership for data centers

what happened

Amazon Web Services (AWS) said it will roll out 3M's Expanded Beam Optical (EBO) technology across its data center infrastructure, widening a strategic tie-up between the two American companies. They plan to jointly develop and invest in optical connectivity, which they see as essential for next-generation artificial intelligence, a field they call super intelligence.

Wendy Bauer, Group President of 3M's Transportation and Electronics business, said AWS's decision shows the technology can meet the performance demands of next-generation data centers. Amazon's supply chain executive Jens Gruenkemeir tied the project to American jobs, noting that 3M's role supports hundreds of positions across its supply chain.

According to the release, the deal and related investment should support more than 500 jobs directly and indirectly, including over 100 new roles through 2027 in Minnesota, Texas and Wisconsin. 3M expects its optical connectivity business to add close to 0.5 billion dollars to the U.S. economy, and its previously announced plan to double output at the Menomonie, Wisconsin plant supports that goal.

why it matters

For markets, the deal signals rising spending on AI data center hardware, a trend that supports makers of networking components. The release does not break out how much this business contributes to 3M's revenue, so the effect on the stock is likely limited. The document includes forward-looking statements and points to risks described in 3M's 2025 Form 10-K.

market impact

3M and Amazon: the optical data center contract supports demand for 3M products in the AI infrastructure segment.

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