SEOUL—On Aug. 31, LS Cable & System, Taihan Cable & Solution, and Gaon Cable said they collectively secured a record order pipeline of about 12.5 trillion won and are stepping up activities in Europe, citing accelerating demand from AI data centers and power-grid investments.
AI data centers, grid upgrades lift backlog
Industry procurement tied to hyperscale computing campuses and utility reinforcement is bolstering medium- and high-voltage cable demand, including XLPE-insulated land cables, substation conductors, and related accessories. Korean producers report stronger tendering for 13.8–35 kV feeders and EHV transmission links that support data center clusters, alongside utility programs to harden and expand networks. Select projects also require optical fiber for campus and interconnect backbones, an area where Korean suppliers maintain capability.
European foothold widens
Utilities and developers across Europe are advancing grid modernization to integrate renewable generation, improve interconnections, and meet load growth from electrification and digital infrastructure. With tender volumes high and lead times extended, Korean manufacturers are increasing bids and project execution support through European subsidiaries and project offices. Near-term focus centers on land HV/EHV cable packages and substation cabling, while longer-range options—such as deeper local sourcing partnerships or added regional capacity—are under review to improve logistics and qualification alignment with EU specifications.
Tight capacity underscores pricing and scheduling discipline
Global demand for HV/EHV cable remains elevated, with manufacturing slots closely managed. Korean suppliers indicate disciplined order intake tied to resin availability, conductor metal procurement, and testing throughput, aiming to balance export commitments with domestic utility needs. For buyers, the environment favors early forecasting, multiyear frameworks, and design standardization to reduce qualification cycles and cost volatility. Copper and aluminum sourcing strategies remain critical, as do on-time accessories and installation services to meet outage windows.
Implications for wire and cable supply chains
Sustained orders in power cable reinforce upstream demand for copper rod, aluminum rod, and clean-room compounding of insulation materials. As European projects emphasize low-loss conductors and grid reliability, specifications are driving interest in advanced XLPE compounds, improved sheath materials, and rigorous type-testing. For data center work, Korean vendors point to redundancy-driven designs and higher ampacity feeders that increase conductor intensity per site, supporting robust export pipelines into 2027.
Outlook
While permitting and interconnection timelines remain key risks, order momentum tied to digital infrastructure and grid resilience appears durable. Korean cable makers’ broader European engagement—combined with a record backlog—positions them to capture near-term utility awards and campus-scale projects, provided qualification, logistics, and installation capacity keep pace.
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