South Korean cable manufacturer Gaon Cable plans to invest $50 million to expand production capacity at its Tarboro, North Carolina, facility, positioning the company to capitalize on growing demand for electrical infrastructure serving artificial intelligence data centers.
The investment will fund the installation of two new Continuous Catenary Vulcanization (CCV) production lines at LSCUS, the U.S. subsidiary of LS Cable & System. The project is expected to double the plant’s production capacity for power transmission cables used in large-scale data center developments.
Expansion targets rapidly growing AI infrastructure market
According to the company, the first CCV line is scheduled to begin commercial production in October 2026, while the second line is expected to enter service in April 2027.
The investment comes as hyperscale data center construction accelerates across the United States. Artificial intelligence applications are driving unprecedented demand for power infrastructure, requiring substantial upgrades to transmission, distribution and facility-level electrical systems.
Gaon Cable reported that capacity from the first phase of the expansion is already nearly fully committed, highlighting the strength of current demand.
Major supply agreements support growth plans
The company recently announced a $2.7 billion busduct supply agreement through LSCUS with a U.S. customer. The contract includes projects associated with major technology companies such as Google, Meta and Amazon.
The agreement underscores how AI-driven infrastructure investments are creating opportunities for cable and electrical equipment manufacturers throughout the supply chain.
Employment and production capacity to increase
The Tarboro facility currently employs approximately 250 workers. Following completion of the expansion, employment is expected to rise to 335 workers, representing a 34% increase.
The plant was originally established in 2011 as a power cable manufacturing operation for LSCUS. Gaon Cable assumed operational control of the facility in 2017 and is currently in the process of acquiring LS Cable & System’s majority ownership position.
LS Cable & System currently owns 82% of LSCUS, while Gaon Cable holds the remaining 18%.
Broader North American growth strategy
Gaon Cable said the North Carolina investment forms part of a broader strategy to expand its North American footprint. The company reported supplying transmission cables for U.S. solar power projects and expects strong growth as utilities, data center developers and renewable energy projects increase infrastructure spending.
The company projects annual revenue growth from approximately $300 million in 2025 to $500 million in 2026, reflecting robust demand across its markets.
In 2024, Gaon Cable further expanded its manufacturing capabilities through the acquisition of G&P, another LS Cable & System subsidiary that produces power cables, compounds and copper conductor products in South Korea.
AI infrastructure continues driving cable investments
The project reflects a broader trend across the wire and cable industry, where manufacturers are expanding capacity to support growing power requirements from AI data centers, renewable energy developments and grid modernization projects.
As hyperscale facilities require increasingly sophisticated electrical infrastructure, suppliers capable of delivering medium- and high-voltage cable systems are expected to remain key beneficiaries of the ongoing AI infrastructure buildout.
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