September 10, 2026 / SemiMedia / — STMicroelectronics expects AI data center revenue to exceed $2 billion in 2027, with about 80% coming from chips used in fiber-optic data connections, Chief Financial Officer Lorenzo Grandi said at Citi's Global TMT Conference in New York.

The remaining roughly 20% is expected to come from semiconductors used in server cooling systems and power conversion. The comments provide the first detailed breakdown of ST's AI data center revenue target after the company raised its outlook earlier this year.

ST previously said data center revenue is expected to exceed $1 billion in 2026 and rise to well above $2 billion in 2027. Growing AI clusters are driving demand for higher-bandwidth optical links, supporting the company's silicon photonics, connectivity IC and related semiconductor businesses.

Grandi said near-term growth will be driven primarily by connectivity. ST's presence in server power remains relatively small, and the company does not expect meaningful revenue from that segment before 2028.

While ST is expanding its position across optical connectivity, cooling and power conversion for AI infrastructure, its latest revenue outlook shows that optical connectivity will remain the dominant contributor to its data center business over the next two years.