Cenergy: Why It Is Doubling Cable Production in the U.S. – The Data Center Boom and the $1.4 Trillion Market

To meet the enormous demand for land cables in the United States, which has surged due to investments in data centers, Cenergy has decided to double the production capacity of its plant currently under construction in Maryland, USA, increasing the number of production lines from two to four, confirming an earlier report by mononews.

The decision, announced yesterday by the Group, reflects the new opportunities arising from the rapid expansion of data centers and artificial intelligence, in a market where demand for electrical infrastructure is growing at a pace that existing production capacity is struggling to meet.

The expansion of Hellenic Cables Americas’ plant in Baltimore represents a strategic move for Cenergy, enabling the company to capture a larger share of the U.S. medium- and high-voltage cable market by capitalizing on both the rapid growth of data centers and the broader modernization of the U.S. power grid infrastructure.

Indicative of the scale of investment required is the fact that planned capital expenditure by U.S. electric utilities for the 2026–2030 period is estimated at $1.4 trillion, with data centers being one of the key drivers of rising electricity demand.

At the same time, the scale of planned data center projects in the United States far exceeds that of Europe. According to data from Aegir Insights, the U.S. market includes 44 planned large-scale projects with a capacity of at least 1 GW each, compared with just 10 in Europe—more than four times as many—while the average size of new facilities is also significantly larger.

This expansion is creating a new and continuously growing market for cable manufacturers, as every large data center requires substantial investment not only in its internal electrical infrastructure but also in grid connections, the reinforcement of transmission lines, and the securing of sufficient power supply.

The fact that cable supply in the United States remains constrained, with domestic manufacturers facing limited production capacity and long delivery lead times, creates favorable conditions for Cenergy’s new facility.

€240 Million Investment – When Will the Four Production Lines Become Operational

The company’s management presented its plans for the U.S. market to a group of analysts visiting its cable manufacturing plant in Thebes, Greece. According to management, the total investment in the Baltimore facility is expected to reach approximately €240 million, representing a significant expansion of the company’s original investment plan.

Management also reiterated its target of €2.5 billion in revenue and €400 million in EBITDA for 2026.

Under the current plan, the plant is expected to commence production in the summer of 2027, initially operating two production lines for land cables. The installation and commissioning of the third and fourth production lines will follow gradually from 2028, with the aim of having all four lines fully operational by 2029.

The phased expansion will allow Cenergy to enter the U.S. market with its initially planned production capacity while gradually increasing output as its order backlog grows.

The additional investment will be financed through the Group’s own resources, as the funds raised through the October 2024 share capital increase have already been allocated to the initial development of the facility.

€5 Billion Order Backlog and New Growth Opportunities

The U.S. investment comes at a time when Cenergy’s order backlog has reached approximately €5 billion, according to the latest reported figures, providing significant visibility into the company’s production activity over the coming years.

The completion of the U.S. plant is expected to create opportunities for a further substantial increase in the order backlog, as the company will be able to compete for more projects directly from its U.S. manufacturing base.

Local production represents a significant competitive advantage, as it reduces reliance on exports from European plants, shortens delivery lead times, and enables the company to operate closer to major U.S. customers, electric utilities, and energy infrastructure developers.

At the same time, the continued growth in electricity demand, combined with constraints on cable supply, creates favorable conditions for sustained strong demand in the years ahead.

As the company points out, electricity demand in the United States is growing at its fastest pace in decades, driven primarily by the expansion of artificial intelligence, the reshoring of industrial activities to the U.S., and the broader electrification of the economy.