AI data centers and grid investment expand; US subsidiary revenue expected to reach KRW 1.5 trillion in 2027
Stronger US product-specific tariffs and expanding global investment in power infrastructure are drawing attention to the competitiveness of Gaon Cable, which has a manufacturing base in the United States. The article's analysis suggests that rising electricity demand triggered by AI data center investment is leading to transmission network expansion and investment in generation facilities, bringing the power industry into a structural growth phase expected to last at least 15 years.
According to industry sources, Gaon Cable is preparing for long-term growth in the North American power market by expanding capacity at its LSCUS manufacturing subsidiary in Tarboro, North Carolina, and broadening its business from distribution cables and busducts to overhead conductors and nuclear power cables.
The strategic value of local manufacturing facilities is also increasing as the US government strengthens product-specific tariffs on steel, aluminum, copper and related derivative products. Manufacturing directly in the United States can reduce exposure to tariffs on imported finished products while meeting customers' requirements for localized supply chains and shorter delivery times.
Gaon Cable plans to invest approximately $50 million to add two production lines at LSCUS's Tarboro plant and double its existing cable production capacity by 2027. It is also reviewing further expansion to meet growing demand from North American customers.
The local business is growing rapidly. LSCUS revenue is expected to increase from approximately KRW 440 billion in 2025 to approximately KRW 870 billion in 2026 and approximately KRW 1.5 trillion in 2027. This would represent approximately 3.4 times its revenue over two years.
AI data centers are central to this growth. LSCUS has secured a basis for long-term busduct supplies worth more than KRW 5 trillion through 2030 with global big tech companies. It is also expanding distribution cable supplies to global cloud companies, broadening its customer base and product range.
However, the drivers of power infrastructure investment extend beyond AI data centers. Replacement of aging US transmission and distribution networks, the addition of generation facilities to meet rising electricity demand, and grid connections for renewables and nuclear power are driving medium- and long-term investment. Grids are essential infrastructure that require continued maintenance, replacement and capacity expansion even after generation facilities or data centers are completed. The article argues that even if new AI data center investment slows, transmission and distribution expansion and replacement of aging equipment will necessarily continue to accommodate electricity demand that has already increased.
According to the Edison Electric Institute (EEI), US utilities plan to invest approximately $178 billion, or approximately KRW 242 trillion, in transmission networks from 2025 through 2028. This suggests that growth in the power infrastructure market could continue over the long term, beyond the short-term AI investment cycle.
In response to these market changes, Gaon Cable is expanding its US business from distribution into transmission and generation. It is pursuing investment in overhead conductor production facilities at LSCUS, targeting initial revenue in 2029.
The company is also reviewing nuclear power cables as a new business targeting 2029 and beyond. It plans to pursue product development, certification and the establishment of a production base in stages to meet demand from US nuclear plant construction and replacement of equipment at existing plants.
Overhead conductors and nuclear power cables are expected to become new revenue sources if the North American power market's growth phase continues over the long term. While existing distribution cables and busducts are driving current growth, transmission and generation products would support growth from 2029 onward. Gaon Cable's strategy is to establish a supply system covering power infrastructure from AI data centers to transmission networks and generation facilities by expanding US production capacity and diversifying into higher-value products.
An industry representative said, “AI data centers have triggered growth in electricity demand, but investment in grids and generation facilities follows a much longer cycle. Companies that secure local production capacity and product portfolios in advance will benefit from the long-term expansion of power infrastructure investment.”
Gaon Cable expected to benefit from stronger US product-specific tariffs and grid expansion, securing a position in global big tech supply chains through its US subsidiary LSCUS
Stronger US product-specific tariffs on steel, aluminum and copper, combined with a surge in electricity demand from AI data centers, are drawing considerable attention to the competitiveness of Gaon Cable, which owns the North Carolina manufacturing subsidiary LSCUS. Through local capacity expansion and product diversification, Gaon Cable is expected to reach KRW 1.5 trillion in North American revenue by 2027 and enter a structural, long-term growth phase lasting at least 15 years.
Improving LSCUS's local manufacturing competitiveness and pursuing a doubling of capacity: The company is investing approximately $50 million to add production lines at the Tarboro plant and double cable production capacity by 2027. Direct local production allows it to avoid product-specific tariff risks and respond quickly to big tech customers' delivery requirements.
US subsidiary revenue expected to increase 3.4 times in two years: LSCUS revenue is estimated to grow rapidly from approximately KRW 440 billion in 2025 to KRW 870 billion in 2026 and approximately KRW 1.5 trillion in 2027.
KRW 5 trillion in busduct and distribution cable supplies secured for global big tech companies: With AI data center construction expanding, the company has secured a basis for long-term busduct supplies worth more than KRW 5 trillion through 2030, while distribution cable supplies to major cloud companies continue to grow strongly.
Expanding into overhead conductors and nuclear power cables to support medium- and long-term growth: To address replacement of aging US transmission and distribution networks beyond the short-term AI investment cycle, with EEI estimating $178 billion in investment from 2025 through 2028, the company is pursuing overhead conductor production investment targeting revenue in 2029 and entry into nuclear power cables, diversifying its portfolio from distribution into transmission and generation.
Gaon Cable boosts US competitiveness through LSCUS subsidiary amid tighter tariffs and expanding power infrastructure investment
As the US intensifies product-specific tariffs on metals and AI data centers generate unprecedented electricity demand, Gaon Cable is capitalizing on its North Carolina manufacturing subsidiary, LSCUS. By expanding local capacity and diversifying into overhead transmission and nuclear power cables, Gaon Cable aims to grow its US revenue to KRW 1.5 trillion by 2027, positioning itself for long-term structural growth.
Key points:
Expanding US production capacity at LSCUS to avoid tariff risks: Investing approximately $50 million in its Tarboro plant to double cable capacity by 2027, reducing tariff exposure on imports while meeting localized supply chain requirements from major US customers.
Rapid US subsidiary revenue expansion, reaching 3.4 times its level in two years: LSCUS revenue is projected to rise from approximately KRW 440 billion in 2025 to KRW 870 billion in 2026 and KRW 1.5 trillion by 2027.
Secured long-term busduct supply opportunities exceeding KRW 5 trillion with global big tech: Accelerated AI data center construction has secured long-term busduct supply agreements exceeding KRW 5 trillion through 2030, alongside expanding distribution cable deliveries to large cloud providers.
Portfolio diversification into transmission and nuclear power cables beyond 2029: Responding to increased US grid modernization investment, with EEI projecting $178 billion in transmission investment through 2028, the company is investing in overhead transmission conductor capacity targeting initial revenue in 2029 while preparing nuclear cable certifications.
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Original Korean article: blog.naver.com
English brief by Korea Wind Intelligence, koreawindintel.com
