As investments in AI (artificial intelligence) data centers surge across the United States, Gaeon Electric’s U.S. production and sales subsidiary, LSCUS, is emerging as a core growth driver for LS Cable & System’s North American operations. LSCUS is expected to more than double its revenue this year compared to last year by expanding supply of power infrastructure required for AI data centers.
In an interview with MoneyToday recently, Son Tae-won, head of LSCUS, stated, “LSCUS’s total revenue is projected to grow approximately twofold from about $290 million (roughly 401.6 billion won) last year to over $580 million (approximately 803.2 billion won) this year.” He added, “This will serve as a key growth engine driving the expansion of Gaeon Electric’s North American business and improvement in performance.”
LSCUS reported first-half revenue of 288.4 billion won for the current year, up 36.6% from the same period last year. Of this, sales to AI data centers reached approximately 240 billion won, an 83% increase, with their share rising from 62% to 84%. As sales of high-value-added products expanded, LSCUS also achieved double-digit operating profit margins.
At the heart of LSCUS’s growth are MV-105 (medium-voltage) cables and bus ducts for AI data centers. First-half revenue from MV-105 reached 126.2 billion won, a 45% increase year-on-year, while bus duct sales rose to 114.2 billion won, approximately 2.5 times higher than the previous period. U.S. hyperscale data centers typically feature campus-style structures with multiple buildings, requiring extensive use of MV-105 cables to connect substations and individual buildings, while bus ducts distribute power within each building. Son, head of LSCUS, expressed confidence, stating, “LSCUS possesses the competitiveness to supply both products in the U.S. market.”
He further predicted that AI data centers will continue to drive growth in the U.S. power market for the foreseeable future. “U.S. investments in data centers are expected to expand to approximately 1.3 trillion won (about 1,800 trillion won) by 2035,” he explained, adding, “Data center electricity consumption is projected to account for about 20% of total U.S. power demand.”
LSCUS is investing approximately 0.5 billion won (roughly 62.9 billion won) to double its MV cable production capacity at its Taboro plant in North Carolina, USA. It will add two CCV (continuous cross-linking facility) production lines, scheduled to begin operations sequentially in September this year and April next year. Due to surging demand, most of the initial production line’s output has already been reserved before operations commence. Separately, LSCUS also signed a long-term bus duct supply contract worth over 5 trillion won with global big tech companies.
Expanding production lines is equally important as securing personnel and know-how to operate them stably. Since MV cables are high-difficulty products manufactured using CCV facilities, operational experience and quality control capabilities are essential. LSCUS prioritizes hiring specialized engineers while providing long-term training for new staff and holds weekly technical meetings with Gaeon Electric’s production technology organization. Son, head of LSCUS, emphasized, “The core of our competitiveness lies in combining local U.S. production capabilities with the technological strength of our Korean headquarters.”
Notably, LSCUS is also strengthening its local response capabilities in line with the recent trend toward expanding domestic content policies in the United States. The company is focusing on building a system that comprehensively provides not only production and sales but also logistics and technical support required by big tech companies. Son stated, “LSCUS integrates local sales, engineering, warehouse operations, delivery, and after-sales services.” He added, “We are acting as a spearhead in penetrating the North American market by identifying new projects and connecting them to product supply from Gaeon Electric’s headquarters.”
Furthermore, LSCUS aims to develop into a North American power cable hub covering submarine cables, ultra-high-voltage transmission cables, and medium- and low-voltage distribution cables over the medium to long term. He concluded, “We will continuously strengthen our production capacity and technological competitiveness to increase our market share in the U.S. AI data center sector.”
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