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An aerial view of LSCUS, Gaon Cable’s manufacturing subsidiary in the United States. / Photo courtesy of Gaon Cable

Gaon Cable announced on June 16 that its U.S. manufacturing subsidiary, LSCUS, will invest 50 million dollars (approximately 76 billion won) to double its production capacity for power transmission cables designed for artificial intelligence (AI) data centers.

The capital expenditure will fund the construction of two new production lines at the subsidiary's manufacturing facility in Tarboro, North Carolina. The first line is scheduled to begin commercial operations in October of this year, followed by the second line in April of next year.

The investment comes amid a massive surge in hyperscale data center projects across the United States, driven by the explosive expansion of generative AI technologies. As securing a stable power supply emerges as a critical determinant of data center competitiveness, investments in related electrical infrastructure are accelerating rapidly.

Leveraging its localized production ecosystem, LSCUS supplies high-performance cable solutions to major global big tech firms. The company currently holds an order backlog of approximately 200 million dollars and projects its annual revenue to surge over 60 percent from around 300 million dollars in 2025 to 500 million dollars in 2026.

According to Gaon Cable, production volume from the first expansion phase due online in October is already nearly fully booked, underscoring the urgent need to scale capacity to meet the soaring demands of the AI infrastructure market.

"We intend to further enhance our customer responsiveness and supply-chain competitiveness by capitalizing on our localized manufacturing presence in the United States," stated Jung Hyun, CEO of Gaon Cable. "We will aggressively expand our North American business footprint in lockstep with the structural growth of the AI data center power infrastructure market."

                                                                                                           Son Kang-hoon