Transmission operators Tennet in the Netherlands and Energinet.dk in Denmark have awarded the contracts for the cable link, which will help integrate renewable energy in to both countries' grid systems.
Siemens will provide the HVDC converters stations for either end of the 325km link; one in Eemshaven, Netherlands, and the other in Endrup, Denmark.
Prysmian has been contracted to supply the direct current cables and be responsible for offshore installation of the cable.
The project is due for completion in 2019.
"One main purpose of the COBRA cable is to promote competition in the Northwest European energy market, which will ultimately benefit consumers," said Tennet CEO Mel Kroon.
"Because we are directly linking the Dutch and Danish power grids, the security of supply for businesses and consumers in both countries will also increase. Plus the Netherlands will be able to import more renewable electricity, generated mainly by Danish wind farms."
Approval of the interconnector was granted in 2014, following the offer of a €86.5 million grant from the European Commission.
The companies involved in the project have plenty of experience linking the North Sea countries.
In July 2015, Prysmian won the contract to supply the 1.4GW North Sea Network link between the UK and Norway.
Tennet is also developing the 1.4GW Nord Link project, between Germany and Denmark, due for completion by 2020.
And Siemens is supplying the HVDC converter stations to the 1GW Nemo Link between the UK and Belgium.