Applied Optoelectronics Inc., an onshoring manufacturer, is set to expand its U.S. roots in Sugar Land with a $2 million incentive approved July 1 by the Sugar Land Development Corp., a city board aimed at economic growth.

The company, which is the largest domestic optical module manufacturer, moved its headquarters—located at 13139 Jess Pirtle Blvd.—to Sugar Land in 2000, according to a July 1 news release. The module converts electrical signals into optical signals and is used in large-scale data centers, telecom networks, cable television infrastructure and artificial intelligence and cloud computing systems.

The big picture

The 10-year agreement would obligate AOI to a lease at 1111 Gillingham Lane, a building the city has been trying to lease out for years, Sugar Land Business Development Manager Jennifer Alexander said. The annual $200,000 payments, which will be funded by the Development Corp's $0.25 sales tax revenue, will begin March 31, 2027.

According to the release, the money will be used to invest in the company’s Sugar Land network, including:
  • Expanding the company’s manufacturing line at its existing headquarters
  • Adding a new 266,000-square-foot facility, which is expected to cost $77 million
The investment will bring 500 jobs to the city, paying an average of $61,240, Alexander said.


“We are grateful to trailblazing companies like AOI for investing in our community, creating vital jobs that enhance our role as a regional technology hub and helping further shape our city into the thriving center of opportunity and momentum that it is today,” Sugar Land Mayor Carol McCutcheon said in the release. “We look forward to the lasting impact that this project will have on our economy and the lives of our residents.”

Zooming In

Founded at the University of Houston in 1997, AOI currently employs over 300 people in the city with additional locations in Taiwan and China, per the release.

“AOI builds infrastructure that powers the most advanced computing systems in the largest data centers in the world,” AOI Chief Financial Officer and Chief Strategy Officer Stefan Murry said in the release. “We are committed to growing our roots and expanding our U.S.-based production capabilities here in Sugar Land, where we have enjoyed lasting support from the city leaders and the community.”


Looking ahead

The expansion is expected to be operational in late summer, while the new facility is expected to begin services in summer 2026.