Applied Optoelectronic (AOI) plans to invest $300 million into an expansion of its Sugar Land plant. AOI builds automated transceivers for data centers. AOI manufactures computer components as well, including lasers, components, modules and equipment.

The Houston Business Journal reports the company recently held a groundbreaking ceremony for AOI’s new 210,000-square-foot space at 1111 Gillingham St. in Sugar Land. The expansion is expected to be complete this summer. Currently, AOI employs 387 local workers, and its 139,450-square-foot headquarters is located at 13139 Jess Pirtle Blvd., down the road from the new building. The company has committed to creating 500 local jobs.

The company hopes to expand its footprint to between 2.5 million and 3 million square feet over the next two years through acquisitions.

AOI will be allowed up to $3.75 million in state tax refunds for its expansion plans.

Don’t miss Carter Andrus, Chief Operating Officer of Prologis, as the keynote interview at Connect Industrial Midwest— taking place Tuesday afternoon, March 10, 2026, at Joe’s Live in Rosemont, IL.