BizLink Holding just made a bold move in the data center world. The Taiwanese cable and connector maker agreed to buy Interplex Datacom’s ICT unit for $850 million in cash, with an extra $50 million tied to future performance.

This deal targets the heart of AI infrastructure. Interplex Datacom crafts custom interconnects and precision mechanical parts critical for high-performance servers and networking gear. These components live inside the racks powering cloud providers and AI workloads.

Blackstone acquired all of Interplex in 2022 for $1.6 billion but is now offloading only the ICT division. Selling this slice for more than half their original outlay suggests the unit remains a prized asset, even if the final price is about 15% below earlier estimates.

BizLink isn’t new to this game. Its product portfolio already spans drone and automotive interconnects, medical imaging systems, and now more deeply into data centers. Interplex’s footprint adds nearly $400 million in annual revenue and a broader customer base in Asia, with operations across China, Vietnam, Malaysia, and Thailand.

Demand for AI infrastructure is booming. US cloud giants are slated to spend around $650 billion on AI-related hardware this year alone. BizLink’s acquisition positions it to ride that wave by supplying the physical backbone—cables, connectors, enclosures—that keep data centers humming.

Financially, BizLink plays big. The $850 million deal is more than a third of its annual revenue, which hit $2.28 billion trailing twelve months. The company boosted its Q1 net income by 41% year over year and has seen its stock rise 42% this year, valuing it at $13.3 billion.

Funding the deal will come from cash reserves and debt financing arranged with Citigroup. The real test lies in integration. BizLink and Interplex Datacom operate out of different hubs—Taipei and Singapore—adding operational complexity. But the strategic gains in data center connectivity seem worth the risk.

Meanwhile, Blackstone keeps the rest of Interplex, now rebranded as Ennovi, focused on electric vehicle components and autonomous driving tech. That business remains separate and serves a different market than the ICT unit BizLink is snapping up.

The $50 million earnout signals some uncertainty about the ICT unit’s short-term outlook. BizLink bets on growth and synergy from combining its existing portfolio with Interplex’s specialized products.

This acquisition underscores a harsh truth: the real race in AI isn’t just about algorithms. It’s also about who controls the physical infrastructure behind cloud computing. BizLink just doubled down on that fact.