Applied Optoelectronics Inc. began construction on two adjacent projects in Pearland that will add nearly 400K SF of manufacturing capacity.

AOI makes products that power the internet and artificial intelligence, including lasers, components, modules and equipment used in data centers and residences. The build-out of the properties at 14621 Kirby Drive and 11555 N. Spectrum Blvd. will support AOI’s plans to increase production of optical transceivers, which let network devices communicate over fiber optics.

Project completion and the start of transceiver production are slated for 2027, according to the Houston Business Journal.

Late last year, AOI announced that it would occupy a new 210K SF facility in Sugar Land, adding a manufacturing line to its existing headquarters. The city of Sugar Land is providing a $2M incentive for the expansion, which is expected to bring a $150M capital investment and create 500 jobs over the next five years.

Pearland and its economic development office supported the company to meet its manufacturing needs for the new projects, AOI Chief Financial Officer Stefan Murry said in a statement.

“As we continue to grow and expand our Houston-area footprint, Pearland offers us access to a strong workforce, excellent infrastructure, and room to scale our operations,” Murry said. “These facilities will be instrumental in supporting our long-term growth strategy, enabling us to expand production of advanced optical transceivers and strengthen AOI's position as a key supplier to the AI and cloud infrastructure markets.”

AOI has research and development facilities in Atlanta and engineering and manufacturing facilities in Taipei, Taiwan, Ningbo, China, and Sugar Land. The company was founded at the University of Houston in 1997 and has grown from 35 to 450 employees in Sugar Land since establishing its headquarters.

Last week, DeliverIt Group announced plans to develop a 60K SF pharmaceutical manufacturing facility in Sugar Land Business Park.