Hidden Winners in the Wire & Power Equipment Supercycle Fueled by AI Data Centers and the U.S. Grid Overhaul

The power grid is easy to overlook, but it’s often the first place where the temperature of industry shows up. AI data centers are sucking down electricity, the U.S. needs to rip out and rebuild its aging grid, and if renewable energy and offshore wind are going to be connected to the system, the answer is ultimately the same: lay more cable, install more transformers, and add more distribution equipment. The current supercycle is, in the end, a phase where profits are flowing to the companies that actually build the grid—makers of cables, transformers, and distribution equipment.

The biggest bottleneck, in particular, is transformers. Supply is so tight that lead times have stretched to as long as two to three years, and the U.S. does not have ample domestic production capacity. That is why Korean companies such as HD Hyundai Electric, Hyosung Heavy Industries, Jeryong Electric, and SANYIL Electric are seeing major spillover benefits from U.S. demand. Still, the more excited the market gets, the more clear-eyed investors need to be. Raw material prices for copper and electrical steel sheet, U.S. local production requirements, and the ever-present debate over when the cycle will peak all matter. The better the industry looks, the more carefully you also need to study how the story could end.

Wires & Cables — The Arteries That Carry Power (5 companies)

Wires are the arteries of the power grid. Extra-high-voltage cables carry electricity over long distances, while submarine cables connect offshore wind and island/coastal grids to the mainland. As data centers and renewable energy expand, power has to move in greater volumes, over longer distances, and with higher reliability. Extra-high-voltage and submarine cables are the infrastructure materials positioned to benefit first in this cycle.

In the domestic market, LS Cable & System is the No. 1 player in extra-high-voltage and submarine cables, while Taihan Cable & Solution ranks No. 2. LS Cable & System itself is unlisted, but its listed affiliates include LS Eco Energy, LS Marine Solution, and Gaon Cable. LS Marine Solution, formerly KT Submarine, handles submarine cable installation and maintenance. The picture is clear: LS Cable & System manufactures, and LS Marine Solution installs. Taihan Cable & Solution, part of the Hoban Group, is a later mover expanding into the submarine segment, with HVDC targeted for 2027. Gaon Cable, a listed LS affiliate, focuses on wires and cables, while Daewon Cable handles electric wires and winding wire, or magnet wire. In the end, this is not just about who sells more. What matters more is who manufactures, who lays the cables at sea, and who can tie the value chain together within the group.

Company	Core focus
LS Cable & System	Korea’s No. 1 in extra-high-voltage and submarine cables — parent company is unlisted (listed affiliates: LS Eco Energy, LS Marine Solution, Gaon Cable)
Taihan Cable & Solution	Korea’s No. 2 in extra-high-voltage and submarine cables — Hoban Group affiliate, later-stage expansion into submarine cables (HVDC targeted for 2027)
Gaon Cable	Wires and cables — listed LS affiliate
Daewon Cable	Electric wires and winding wire (magnet wire)
LS Marine Solution	Submarine cable installation and maintenance — formerly KT Submarine, with LS Cable & System as the largest shareholder (manufacturing = LS Cable & System / installation = LS Marine)

Ultra-High-Voltage Transformers & Heavy Electrical Equipment — Korean Power Gear the U.S. Is Buying (5 companies)

The real bottleneck in this market cycle is ultra-high-voltage transformers. In the U.S., grid replacement and data center expansion are happening at the same time, but transformers are not something you can source overnight. There’s a reason people keep talking about longer lead times. The U.S. supply shortage has created the most direct export opportunity for Korean ultra-high-voltage transformer makers.

HD Hyundai Electric manufactures 765kV-class ultra-high-voltage transformers and has a major presence in the U.S. transformer market, with local market share often cited at around 20%, putting it in the top tier. Calling it a leading exporter to the U.S. is no exaggeration. Hyosung Heavy Industries has 800kV-class breakers, ultra-high-voltage transformers, and STATCOM, and its North America sales are expected to surpass KRW 1 trillion in 2025. Iljin Electric’s strength is vertical integration across ultra-high-voltage transformers and cables. Sanil Electric supplies transformers for renewables and data centers to customers including Bloom Energy, with exports accounting for about 83% of sales, and it listed in 2024. Jeryong Electric is strong in mold and pole-mounted distribution transformers, with roughly 90% of revenue coming from exports to North America, supplying customers including PSE&G. Whether it’s ultra-high-voltage or distribution transformers, the key fact is the same: the U.S. is buying. But the question still remains. How long can this favorable cycle last? Strong numbers are always followed by capacity expansion and price competition.

Company	Core focus
HD Hyundai Electric	Ultra-high-voltage transformers (765kV) — top local player in the U.S. transformer market (~20%), leading exporter to the U.S.
Hyosung Heavy Industries	Ultra-high-voltage transformers · breakers (800kV) · STATCOM — North America sales to surpass KRW 1 trillion in 2025
Iljin Electric	Ultra-high-voltage transformers + cable vertical integration — Iljin Group
Sanil Electric	Transformers for renewables and data centers — supplies Bloom Energy and others (exports ~83%, listed in 2024)
Jeryong Electric	Distribution transformers (molded, pole-mounted) — ~90% of revenue from North America exports (including PSE&G)

Distribution, Switching, and Grid Systems — The Hands and Feet of the Power Grid (3 companies)

The grid is not complete with just wires and transformers. It only starts to function as a real power network when equipment is added to distribute, disconnect, protect, store, and control electricity. That is why switchboards, circuit breakers, switchgear, ESS, and microgrids matter. Distribution, switching, and grid equipment represent the final assembly stage of power grid investment—and the area that ultimately determines real-world usability.

LS ELECTRIC is strong in low-voltage and distribution equipment, especially switchboards and circuit breakers, and is expanding into ultra-high-voltage transformers, ESS, and microgrids. It is less a company that simply sells one or two pieces of power equipment and more one that broadens the scope of grid operation. Seojeon Electric holds capabilities in power distribution panels, switchboards, and MCCs, along with eco-friendly gas-insulated switchgear in the form of distribution-grade C-GIS. Vitzro Tech has an established base in switchgear and electrical control for KEPCO and power generators, while also diversifying into batteries and defense. They may not be flashy, but these are the kinds of companies that serve as the hands and feet on the ground. After all, you cannot just string transmission lines and call it a day.

Company	Core focus
LS ELECTRIC	Leader in low-voltage and distribution equipment (switchboards and circuit breakers) + expanding into ultra-high-voltage transformers, ESS, and microgrids
Seojeon Electric	Power distribution panels, switchboards, and MCCs + eco-friendly gas-insulated switchgear (distribution-grade C-GIS)
Vitzro Tech	Switchgear and electrical control (KEPCO and power generators) — diversified into batteries and defense

What to Watch Going Forward

The next big theme, in the end, is electricity. AI data centers have already become power-hungry industries, and replacing the aging U.S. power grid is no longer something that can be put off. Add in renewable energy and offshore wind connections, and demand for cables, transformers, and distribution equipment is unlikely to cool off easily. For the time being, Korean power equipment makers are likely to remain one of the key beneficiaries of expanding U.S.-driven investment.

But cyclical industries should always be viewed more cautiously when they are hottest. If copper and electrical steel sheet prices rise, profitability can come under pressure, and U.S. tariffs and reshoring policies may intensify demands for local production. Right now, supply shortages are supporting both pricing and orders, but once capacity expansions accumulate, the debate over a peak will inevitably begin in earnest. The word “supercycle” is seductive. But the companies that endure are not simply those riding favorable market conditions—they are the ones that can hold up on costs, production bases, and customer portfolios alike. In the end, the market separates that difference with ruthless clarity.

※ This article is based on publicly available materials cross-checked online to summarize company names, core businesses, and market positions, and some of the assessments reflect the author’s own views. It is not intended as a direct basis for investment decisions.

Written: July 2026. E. Alexandro