A Sugar Land maker of AI data center optics says its United States expansion is waiting on electrical power
Applied Optoelectronics filed its third quarter results with the SEC on November 5th, 2026. The company makes optical transceivers for AI data centers, and its quarterly report says it makes its laser chips only in its Sugar Land facility. Its chief financial officer says total equipment capacity is approaching 330,000 units a month. The same officer says the 2027 expansion plan in the United States will take longer to finish, because obtaining the electrical power it needs is taking longer than expected. The company expects equipment for over 500,000 of its 800G and 1.6 Tb products a month by the end of 2026. It expects capacity for over 1 million of those transceivers a month by the end of 2027. Its quarterly report lists new space at Gillingham Lane in Sugar Land and a property it bought in Pearland. It also lists two buildings still to be built on Chimney Rock Road in Houston. Neither filing says which building is waiting on power or which utility serves it.
How to take part
There is no public process. The release and the quarterly report are company filings at the SEC, and questions about the expansion go to Applied Optoelectronics.
Where
1 county. In Houston-Pasadena-The Woodlands.
Timeline
- filed
Third quarter results filed with the SEC as an exhibit to Form 8-K, with the quarterly report on Form 10-Q the same day
- Today
How this decision moved
One dated line per check, oldest first. A line that says nothing changed means somebody looked and it had not.
- 2026-11-05
Admitted on the company's SEC filings of November 5th. Neither filing names the site that is waiting on power.
- 2026-11-08
Applied Optoelectronics' filings still say the expansion waits on electrical power, and still name no site.
- 2026-11-11
The Sugar Land optics maker still says its United States expansion waits on electrical power.
The evidence
Every fact above rests on one of these. The words are the source's own.
We expect our 2027 capacity expansion plan in the US to take longer to complete due to longer than expected time to obtain necessary electrical power among other construction related issues.Applied Optoelectronics, Third Quarter 2026 Results (Form 8-K, Exhibit 99.1) Primary source, the company · sec.gov
We currently have a total manufacturing equipment capacity approaching 330,000 units per month.Applied Optoelectronics, Third Quarter 2026 Results (Form 8-K, Exhibit 99.1) Primary source, the company · sec.gov
we now expect by the end of 2026 that we will have sufficient manufacturing equipment installed to produce over 500,000 pieces of 800G and 1.6 Tb products per monthApplied Optoelectronics, Third Quarter 2026 Results (Form 8-K, Exhibit 99.1) Primary source, the company · sec.gov
we expect to grow our manufacturing capacity to over 1 million pieces of 800G and 1.6 Tb transceivers per month by the end of 2027.Applied Optoelectronics, Third Quarter 2026 Results (Form 8-K, Exhibit 99.1) Primary source, the company · sec.gov
We have made meaningful progress in scaling our manufacturing capabilities, particularly for our 800G and 1.6T products, to address demand for AI-related optical technologies that we believe is accelerating.Applied Optoelectronics, Third Quarter 2026 Results (Form 8-K, Exhibit 99.1) Primary source, the company · sec.gov
We have recently secured a multi-year strategic agreement with a Tier 1 hyperscale datacenter customerApplied Optoelectronics, Third Quarter 2026 Results (Form 8-K, Exhibit 99.1) Primary source, the company · sec.gov
We have three manufacturing sites: Sugar Land, Texas, Ningbo, China and Taipei, Taiwan.Applied Optoelectronics, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 Primary source, the company · sec.gov
We manufacture our laser chips only within our Sugar Land facility, where our laser design team is located.Applied Optoelectronics, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 Primary source, the company · sec.gov
In the U.S., at its corporate headquarters and manufacturing facilities in Sugar Land, Texas, the Company primarily manufactures lasers and laser components as well as certain of its data center transceiversApplied Optoelectronics, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 Primary source, the company · sec.gov
the Company leases approximately 209,665 square feet of space located at 1111 Gillingham Lane, Sugar Land, Texas 77478.Applied Optoelectronics, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 Primary source, the company · sec.gov
The leased premises is used by the Company primarily for manufacturing and related operations.Applied Optoelectronics, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 Primary source, the company · sec.gov
located at 14621 Kirby Drive and 11555 North Spectrum Boulevard, Pearland, Texas, consisting of approximately 388,133 square feet in the aggregateApplied Optoelectronics, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 Primary source, the company · sec.gov
On August 31, 2026, the Company entered into two separate lease agreements with Hightower Phase II Owner, LLC ("Hightower II"), an affiliate of Hightower, for two industrial buildings to be constructed at 17331 Chimney Rock Road ("Building 4" ) and 17433 Chimney Rock Road ("Building 5" ), Houston, Texas 77053, consisting of approximately 356,186 and 737,621 rentable square feet, respectively.Applied Optoelectronics, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 Primary source, the company · sec.gov
Substantial completion is anticipated approximately 16 months following the date of the leases.Applied Optoelectronics, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 Primary source, the company · sec.gov
The City of Sugar Land Reinvestment Zone No. 2014-02 is an area located in Fort Bend County, TexasTax Abatement Agreement between Fort Bend County and Applied Optoelectronics, Inc. Primary source, official · agendalink.fortbendcountytx.gov
The acquisition closed on April 16, 2026.Applied Optoelectronics, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 Primary source, the company · sec.gov
The leased premises were used for office, warehouse and light manufacturing and assembly purposes.Applied Optoelectronics, Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 Primary source, the company · sec.gov
Questions about this decision
Answered from the record itself. Every answer is assembled from stored fields, so an answer the record has no basis for is left out rather than guessed.
What is this decision?
Applied Optoelectronics filed its third quarter results with the SEC on November 5th, 2026. The company makes optical transceivers for AI data centers, and its quarterly report says it makes its laser chips only in its Sugar Land facility. Its chief financial officer says total equipment capacity is approaching 330,000 units a month. The same officer says the 2027 expansion plan in the United States will take longer to finish, because obtaining the electrical power it needs is taking longer than expected. The company expects equipment for over 500,000 of its 800G and 1.6 Tb products a month by the end of 2026. It expects capacity for over 1 million of those transceivers a month by the end of 2027. Its quarterly report lists new space at Gillingham Lane in Sugar Land and a property it bought in Pearland. It also lists two buildings still to be built on Chimney Rock Road in Houston. Neither filing says which building is waiting on power or which utility serves it.
Who decides it?
Applied Optoelectronics decides. The record names the deciding body for every entry it carries.
Can the public take part?
There is no public process. The release and the quarterly report are company filings at the SEC, and questions about the expansion go to Applied Optoelectronics. No dated public window is on the record. The deciding body is named and reachable.
Where in Texas does it apply?
It covers Fort Bend County.
Has it been decided?
It has been decided. The dates on the item page carry when.
What happens next?
No future date is on the record. The last dated step on it was filed on November 5th.
When did it start?
The earliest date on its record is November 5th, 2026.
What kind of decision is it?
It is filed under data centers.
What sources back it?
Three sources back it. Three of them are primary.
When was it last checked?
Every fact on it was last verified against its source on November 11th, 2026.
Cite this
Texas AI Docket, A Sugar Land maker of AI data center optics says its United States expansion is waiting on electrical power. Tracked since November 5th, 2026. Last verified November 11th, 2026. https://texasaidocket.com/item/tx-2026-0241/. Reuse permitted under CC BY 4.0 with attribution. The same entry is in the docket JSON as item tx-2026-0241.
Beat
Filed under Data centers, with every other decision on that beat.