Construction Milestone
LS GreenLink USA, Inc., a U.S. subsidiary of South Korea's LS Cable & System, commenced vertical construction in May 2026 on a 201-meter (660-foot) Vertical Continuous Vulcanization (VCV) tower at its Chesapeake, Virginia facility. The milestone was marked with a Phase 1 Construction Milestone Ceremony attended by Governor Abigail Spanberger and U.S. Senators Mark Warner and Tim Kaine. Upon completion, the VCV tower will be Virginia's tallest structure - surpassing the Westin Virginia Beach Town Center - and the tallest industrial structure on the East Coast between Philadelphia and Charlotte.
What Is a VCV Tower
A VCV tower is the core production unit for manufacturing high-voltage direct current (HVDC) submarine cables. Cables are vulcanized vertically to minimize gravitational effects on the insulation layer, improving cable quality and consistency. The technology is essential for deep-water cable runs such as offshore wind-to-shore interconnections and long-distance undersea grid transmission.
Project Scale
Phase 1 represents a $681 million investment. The manufacturing complex covers 750,000 square feet - roughly 13 football fields under one roof - on the Elizabeth River basin. Hanmi Global serves as construction manager, Hyundai Engineering as general contractor, and Heerim Architects & Planners as principal architect. Phase 1 groundbreaking took place in April 2025; construction is targeted to complete Q4 2027, with full production beginning Q1 2028, creating 330+ full-time jobs.
Grid and AI Data Center Context
The facility targets growing U.S. demand for domestic submarine cable supply. Bon-Kyu Koo, President & CEO of LS Cable & System, described the project as reflecting "long-term commitment to the global energy transition" and strengthening "localized manufacturing capabilities in key markets." Senator Warner, who tied the project's viability to the Inflation Reduction Act, said the facility will "strengthen our grid, modernize our energy infrastructure, and increase our energy security." UPI's reporting framed the demand driver as both grid upgrades and AI data-center power expansion, though the primary cable use cases are offshore wind interconnection and inter-grid transmission.
Competitive Context
LS GreenLink's Chesapeake plant will be one of only a handful of domestic HVDC submarine cable manufacturers in the U.S. Separately, Hellenic Cables is building a $300 million cable plant at Wagner's Point in Maryland - reflecting a broader push to reshore critical energy transmission infrastructure that currently relies heavily on overseas producers.
Key Points
- 1What: LS GreenLink USA began vertical construction on a 201-meter VCV tower at its $681 million Chesapeake, Virginia submarine cable plant.
- 2Why: The facility targets U.S. demand for HVDC submarine cables supporting offshore wind, grid modernization, and AI data center power transmission.
- 3So what: Virginia's future tallest structure will be one of few U.S. domestic HVDC cable manufacturers; full operations expected Q1 2028.
Scoring Rationale
Significant energy infrastructure milestone - one of the first domestic HVDC submarine cable plants in the U.S. - with a credible indirect link to AI data center power demand. However, the direct AI/DS/ML relevance is limited: the facility primarily serves offshore wind and grid transmission, and the construction milestone does not alter near-term AI infrastructure supply. Solid infrastructure story for practitioners tracking AI power bottlenecks.
Practice interview problems based on real data
1,625 SQL & Python problems across 15 industry datasets — the exact type of data you work with.
Try 250 free problems