Gaon Cable plans to invest $50 million to expand its facility in Tarboro, North Carolina. As a result, the company aims to capture rising demand for electrical infrastructure tied to AI data centers.
The investment will fund two new Continuous Catenary Vulcanization (CCV) lines at LSCUS, the U.S. subsidiary of LS Cable & System. Consequently, the project is expected to double production capacity for power transmission cables used in large-scale data centers.
Targeting AI Infrastructure Growth
The expansion will roll out in phases. First, the initial CCV line is set to begin production in October 2026. Then, the second line is expected to come online in April 2027.
Meanwhile, hyperscale data center construction continues to accelerate across the U.S. In particular, AI applications are driving demand for power transmission and distribution systems.
As a result, utilities and developers must upgrade grid and facility-level infrastructure. Notably, Gaon Cable reported that much of the first-phase capacity is already nearly fully committed, underscoring strong demand.
Supply Agreements Support Expansion
In addition, the company recently secured a $2.7 billion busduct supply agreement through LSCUS. The contract includes projects tied to major tech companies such as Google, Meta, and Amazon.
Therefore, the agreement highlights how AI-driven infrastructure investment is creating opportunities across the wire and cable supply chain.
Workforce and Ownership Changes
Currently, the Tarboro facility employs about 250 workers. Following the expansion, that number is expected to rise to 335 employees, a 34% increase.
The plant was originally established in 2011 under LSCUS. Later, Gaon Cable assumed operational control in 2017. Now, the company is working to acquire LS Cable & System’s majority stake.
At present, LS Cable & System owns 82% of LSCUS, while Gaon Cable holds 18%.
Expanding North American Presence
More broadly, the investment supports Gaon Cable’s North American growth strategy. The company has already supplied cables for U.S. solar projects and expects continued demand.
As infrastructure spending rises, growth is expected across utilities, data centers, and renewable energy projects. Consequently, Gaon Cable projects revenue growth from about $300 million in 2025 to $500 million in 2026.
In addition, the company expanded capabilities in 2024 by acquiring G&P, an LS Cable & System subsidiary. This move added production of power cables, compounds, and copper conductors.
Industry-Wide Investment Trend
Overall, the project reflects a broader trend in the wire and cable industry. Manufacturers are increasing capacity to support AI data centers, renewable energy, and grid modernization.
As a result, demand for medium- and high-voltage cable systems continues to rise. Suppliers with scalable capacity and advanced production capabilities are well positioned to benefit from this ongoing AI-driven infrastructure buildout.
