Gaon Cable, a subsidiary of LS Cable & System, is expanding its local production facilities in the United States to meet growing demand for power infrastructure for artificial intelligence (AI) data centers.

On the 16th, Gaon Cable announced that its U.S. manufacturing subsidiary LSCUS will invest USD 50 million (about KRW 7.5 billion) to double the production capacity for transmission cables for AI data centers at its Tarboro plant in North Carolina. In the United States, the spread of generative AI technology has recently led to an increase in the construction of hyperscale AI data centers, driving up demand for power supply facilities, a core form of infrastructure.

With this investment, two new transmission cable production lines will be added at the Tarboro plant. The first line is scheduled to begin operation in October this year, followed by the second line in April next year. The company stated that most of the output from the first line has already been pre-ordered.

LSCUS has secured global big tech companies as key clients and currently holds a backlog worth about USD 200 million (about KRW 300 billion). The company projected that once the expansion effect is fully realized, the subsidiary’s sales will increase from about USD 300 million (about KRW 450 billion) in 2025 to USD 500 million (about KRW 750 billion) in 2026.

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