Gaon Cable, a subsidiary of LS Cable & System, is gaining a competitive edge in the United States as Washington tightens tariffs on steel, aluminum and copper-related products, with its local manufacturing base helping it reduce tariff exposure and navigate supply chain uncertainties.
The company is expanding its U.S. production capacity while broadening its business from artificial intelligence (AI) data centers to power transmission networks and power plants, positioning itself to tap growing demand for electricity infrastructure.
Gaon Cable operates LSCUS, its U.S. production subsidiary, in Tarboro, North Carolina. It supplies power cables and bus ducts to global technology giants and AI cloud service providers, strengthening its foothold in the North American market.
The company plans to invest approximately $50 million to add two production lines at its Tarboro facility, doubling its cable production capacity by 2027. Further expansion is under consideration depending on new orders and customers' investment plans.
LSCUS' revenue is projected to rise from approximately 440 billion won ($327 million) in 2025 to 870 billion won in 2026 and 1.5 trillion won in 2027, representing a roughly 3.4-fold increase over two years.
AI data centers are driving much of this growth. LSCUS has secured long-term bus duct supply contracts worth more than 5 trillion won through 2030 with global big tech companies.
As AI data centers expand into large-scale campuses, major technology companies are also pursuing their own power generation facilities to secure stable electricity supplies. This is driving demand for not only bus ducts used inside data centers but also distribution cables connecting power plants and data centers, as well as overhead conductors for long-distance transmission networks.
In response, Gaon Cable is expanding its U.S. business beyond power distribution into transmission. It plans to install new overhead conductor production facilities at LSCUS, targeting initial sales in early 2029.
According to the Edison Electric Institute, U.S. electric utilities plan to invest approximately $178 billion in transmission networks between 2025 and 2028, driven by growing demand from AI data centers, advanced manufacturing facilities and new power generation sources.
The company is also exploring nuclear power plant cables as a potential -generation business, reviewing relevant products and certification requirements ahead of a possible phased entry into the market.
With its expanding product portfolio spanning distribution cables, bus ducts, overhead conductors and nuclear power plant cables, Gaon Cable aims to build an integrated power infrastructure supply base in the United States.
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