LS Cable & System announced on Thursday that its U.S. subsidiary, LS Greenlink, has begun construction of a vertical continuous extrusion system (VCV) tower for its underwater cable production plant in Chesapeake, Virginia.
The LS Greenlink facility, slated to be the largest underwater cable manufacturing site in the U.S., aims to complete construction in the latter half of 2027 and commence commercial production in Q1 2028. Underwater cables are vital communication and power conduits installed beneath the sea to connect countries or link mainland areas to islands.
The groundbreaking ceremony was attended by notable figures, including LS Cable & System President Koo Bon-kyu, Virginia Governor Abigail Spanberger, and U.S. Senator Tim Kaine.
The VCV tower is a crucial production facility that forms the insulation layer of the cables. By manufacturing cables vertically, it minimizes gravitational effects, thereby enhancing both quality and productivity. Upon completion, the 201-meter structure will be the world’s largest VCV facility and Virginia’s tallest structure.
The U.S. is currently pushing for substantial investments in transmission infrastructure, driven by the need to modernize aging power grids and support the rapid expansion of artificial intelligence (AI) data centers. With only one large-scale underwater cable manufacturing facility currently operating in the U.S., LS Greenlink is poised to become the country’s largest production hub once completed.
As policies favoring domestic production expand to bolster energy security and strengthen supply chains, LS Cable & System is ramping up its efforts to capture a larger share of the North American market.
LS Greenlink and LS Marine Solutions are targeting the ultra-high voltage transmission market. This sector utilizes voltages exceeding 154 kilovolts (kV) to efficiently transmit electricity from power plants over long distances to major urban centers and industrial complexes with minimal power loss.
Gaon Cable is focusing on the power infrastructure market for AI data centers, working to establish a robust North American power value chain. AI data centers are known for their enormous power consumption, with generative AI computations and training reportedly requiring 7 to 8 times more electricity than standard servers.
Koo Bon-kyu, President of LS Cable & System, stated that LS Greenlink represents a strategic base capable of supplying not only North America but also the European market. It aims to expand the market presence by leveraging the local production capacity and technological edge.
Virginia Governor Abigail Spanberger commented that LS Greenlink is a flagship project that showcases Virginia’s prowess in advanced manufacturing. It anticipates it will make significant contributions to job creation and the advancement of our energy infrastructure.