Gaon Cable, a subsidiary of LS Cable & System, will expand local production capacity in the United States to respond to the growing artificial intelligence (AI) data center market.
Gaon Cable said on the 16th that its U.S. manufacturing subsidiary LSCUS will invest $50 million (about 76 billion won) to double its production capacity for transmission cables for AI data centers.
With this investment, Gaon Cable will add two new production lines at its Tarboro, North Carolina, plant in the United States. The first line will start up in Oct. this year, followed by the second line in Apr. next year.
In the United States, investment in hyperscale data centers has surged with the spread of Generative AI, rapidly increasing demand for power infrastructure. As stable power supply emerges as a key element of data center competitiveness, related facility investment is also expanding.
LSCUS supplies products to global big-tech corporations based on its U.S. local production system. It currently has a backlog of about $200 million and expects sales to grow more than 60%, from about $300 million in 2025 to $500 million in 2026.
A Gaon Cable official said, "Most of the first expansion volume scheduled to start operating in Oct. is already reserved," adding, "We plan to respond to the surging demand for AI data centers by expanding production capacity."
LSCUS is building a power solutions portfolio for AI data centers that encompasses power cables, cable bus, and busduct. In particular, the busduct business is growing rapidly, having secured long-term supply contracts worth more than 5 trillion won with global big-tech corporations.
Jung Hyun, CEO of Gaon Cable, said, "We will further strengthen our customer responsiveness and supply competitiveness based on our U.S. local production system," adding, "We will expand our North American business in line with the growth of the AI data center power infrastructure market."