The City of Sugar Land, together with Applied Optoelectronics Inc. announced that AOI is expanding its operations by onshoring part of its international manufacturing to Sugar Land. AOI is making a capital investment of over $150 million and will create over 500 new jobs in Sugar Land over the next five years.

The expansion is supported by a $2 million incentive package from the city, with assistance from Fort Bend County. The expansion includes the addition of a new manufacturing line to AOI’s existing headquarters, and a new 210,000 square foot facility for manufacturing innovative optical transceivers for AI-focused data centers, expected to be operational by summer of 2026.

AOI was founded at the University of Houston in 1997 and opened its headquarters in Sugar Land with 35 employees 25 years ago. The company’s products power the internet, including lasers, components, modules and equipment and are used in data centers and throughout CATV broadband, telecom and fiber-to-the-home (FTTH) markets.