Abstract
The large-scale construction of global artificial intelligence computing centers has driven rapidly rising demand for special cables used in data centers across Southeast Asia, the Middle East and Europe. For a long time, China's wire and cable industry has relied on low-price exports of ordinary construction and power grid cables, featuring low added value and severe internal competition. Based on field research data from the Canton Fair, this study finds that Low Smoke Zero Halogen (LSZH) cables have become a mandatory access requirement for high-end overseas computing projects. The sample enterprise achieved a 125.9% year-on-year increase in export volume in the first half of 2026, serving as a typical case of Chinese cable enterprises expanding overseas through the computing power track. This paper analyzes regional differences in market demand for cables used in global computing centers and the technical value of LSZH cables. It summarizes overseas development strategies adopted by domestic cable enterprises, analyzes challenges including raw material price volatility, international certification barriers and overseas compliance risks, and puts forward countermeasures for industrial upgrading and international operation. The findings can provide references for Chinese cable enterprises to transform into exporters of high-value-added special cables.
Keywords: special cables; Low Smoke Zero Halogen (LSZH) cables; AI computing centers; cable exports; Canton Fair
1. Introduction
With the rapid expansion of AI large model industries, globally distributed hyperscale data centers and intelligent computing center projects have been launched intensively, making computing infrastructure construction a new mainline of global infrastructure investment. As high-density closed computer rooms, data centers impose stringent standards on flame retardancy, low smoke emission and non-toxicity for power distribution and wiring cables, which in turn generates incremental markets for special cables.
China is a major global manufacturer of wires and cables. Nevertheless, its export products have long been dominated by ordinary PVC construction cables, accompanied by fierce homogenized competition and slim profit margins. In recent years, some domestic cable enterprises have shifted to high-value-added special cable tracks for data centers and energy storage supporting facilities, bringing explosive growth in overseas orders. Field investigations at the 140th Canton Fair show that purchasers of data centers from Southeast Asia, the Middle East and Europe have strong demand for LSZH special cables, and the overseas revenue of the sample enterprise has doubled. Computing infrastructure is reshaping the export structure of China's cable industry, shifting exports from ordinary cables to special cables and system supporting services. Against this backdrop, studying the internal logic of special cable exports driven by computing centers, corporate practices, risks and countermeasures carries practical significance.
2. Market Demand Analysis of Special Cables Driven by Global AI Computing Infrastructure
2.1 Regional Pattern of Global Computing Center Construction
Global computing projects are mainly concentrated in three regions: Southeast Asia, the Middle East and Europe, with notable discrepancies in construction pace and technical standards.
In Southeast Asia, Malaysia, Singapore and Thailand are constructing and expanding data centers on a large scale. Malaysia has planned dozens of large data center clusters. A single large-scale computing project may consume tens of millions of meters of cables, representing a huge market volume. The Southeast Asian market shows hierarchical characteristics: traditional PVC cables are still widely used for general power distribution in buildings. For newly built large IDCs and computing centers, international fire safety standards have been gradually adopted, pushing up the demand for LSZH cables.
In the Middle East, large-scale AI computing clusters such as Saudi Arabia's NEOM project are under accelerated implementation. Projects in the Middle East adopt strict safety specifications with high thresholds for fire acceptance in computer rooms. Tenders for large computing projects treat LSZH cables as a mandatory requirement, and high-end special cables enjoy significant premium margins.
In Europe, the EU Construction Products Regulation mandates the application of LSZH cables in data centers and enclosed machine room spaces. In addition to newly built computing centers, renovation projects for outdated existing machine rooms generate steady demand, making Europe a mature market with rigid demand for LSZH cables.
2.2 The Mandatory Demand Logic of Low Smoke Zero Halogen (LSZH) Cables
When burning, ordinary PVC cables release massive amounts of toxic halogen smoke and corrosive gases. In fire incidents inside enclosed machine rooms, dense smoke may cause personnel poisoning and irreversible damage to servers and precision equipment. LSZH cables produce low smoke density and no toxic halides during combustion. They can maintain visibility for escape routes under fire conditions and protect core computing equipment. Complying with fire safety specifications of international projects such as CE and IEC, LSZH cables constitute an access threshold for tenders of high-end overseas computing projects and belong to high-value-added special cables.
Apart from LSZH cables, computing centers also adopt high-temperature silicone rubber cables, intelligent early warning monitoring cables and energy storage connection cables, covering power distribution, signal transmission, energy storage conversion and other scenarios in machine rooms to form a complete product matrix of special cables.
3. Case Analysis: Explosive Growth in Overseas Business of the Sample Enterprise
The case selected for this study is a domestic enterprise specializing in the R&D and manufacturing of special cables. Its products are exported to 34 countries and regions worldwide, and its foreign trade business has maintained rapid growth for two consecutive years. Its export volume in the first half of 2026 increased by 125.9% year-on-year.
Feedback collected at the Canton Fair shows that during the 139th and 140th sessions, a large number of purchasers of data centers from Europe, America, Southeast Asia and the Middle East visited its booth. Buyers focused on verifying the flame retardancy and LSZH performance of cables, and some conducted on-site ignition tests on cable sheaths, holding negotiations and signing letters of intent on the spot.
The enterprise adopts four core strategies for overseas expansion: First, it sets up a professional overseas business team and realizes "chain-based overseas expansion" through industrial consortia. Second, it develops overseas warehouses and localized after-sales service systems to shorten delivery cycles and rapidly respond to maintenance demands for large overseas projects. Third, it carries out R&D and production of multiple versions of products in accordance with European standards, American standards and IEC international standards to meet market access certifications of different countries. Fourth, it improves the corporate international compliance system and has obtained ISO37301 compliance certification and ISO37001 anti-bribery certification to satisfy compliance reviews in bidding for large overseas engineering projects.
This case proves that domestic cable enterprises are no longer limited to competing in the international market with low-priced ordinary wires. By focusing on the track of special cables for data centers, mastering core technologies such as LSZH, obtaining complete international certifications and building localized service capabilities, enterprises can achieve leapfrog growth in overseas business.
4. Opportunities and Challenges Faced by China's Special Cable Exports
4.1 Industrial Opportunities
Sustained demand driven by the long construction cycle of global computing infrastructure: The expansion of AI computing power is not a short-term trend. New construction and renovation of data centers in Southeast Asia, the Middle East and Europe will continuously generate orders for special cables in the medium and long run, opening a new export track for domestic cable enterprises and optimizing the export product structure of China's cable industry.
Supporting advantages of domestic industrial chains: China's cable industry boasts a complete industrial chain with mature capabilities in material production, extrusion, testing and large-scale manufacturing. It can rapidly respond to customized demands for special cables from overseas projects and maintain advantages in cost and delivery efficiency.
Policy support for overseas exports of high-end equipment and electrical and electronic products: The Digitalization and Green Coordinated Transformation Development Implementation Plan (2026–2030) issued by seven national departments promotes digital and low-carbon transformation of manufacturing industries, encourages the development of new power systems and computing power supporting industries, and supports exports of high-value-added electrical products.
4.2 Industrial Challenges
Fluctuation risks of raw material prices: Copper serves as the core raw material for cables. The spot price of China's No.1 electrolytic copper fluctuates at a high level. Copper price volatility directly affects the costs of cable enterprises. Long-cycle quotations for overseas projects carry substantial cost risks and impose heavy pressure on corporate price management.
Barriers of international certification: Certifications such as CE for Europe, UL for the United States and local certifications in the Middle East involve long cycles and high costs. Overseas projects impose strict requirements on test reports, sample verification and on-site testing. Enterprises without corresponding certifications are disqualified from bidding for high-end computing projects.
Pressures of overseas compliance and after-sales services: Tendering, anti-bribery, labor and environmental compliance reviews for overseas projects are rigorous. Delivery, maintenance and after-sales costs for long-distance exports are significantly higher than those in the domestic market.
Inertia of low-price competition in the industry: The mindset of low-price bidding still prevails in China's cable industry. Some enterprises impact overseas markets with low-cost products, which may trigger anti-dumping investigations and damage the brand image of Chinese cables as a whole.
5. Countermeasures for Chinese Cable Enterprises to Enter the Overseas Market of Computing Power Cables
Upgrade product structure and focus on the special cable track Enterprises shall reduce investment in low-price exports of low-value-added ordinary PVC cables, increase R&D investment in LSZH cables, high-temperature silicone rubber cables and intelligent monitoring cables for computing power, build a complete product system of special cables, and target high-margin markets such as overseas IDCs and energy storage supporting facilities.
Arrange international standards and product certifications in advance For target markets in Southeast Asia, the Middle East and Europe, enterprises shall complete necessary certifications including CE, IEC and UL in advance, establish standardized testing systems and conduct sample verification to satisfy access requirements for tenders of large overseas projects.
Innovate overseas expansion models and promote localized services Qualified enterprises may build overseas warehouses and local technical service teams, shifting from merely "selling products" to delivering integrated solutions combining products, technology and maintenance services. This helps shorten delivery cycles and enhance customer stickiness.
Establish risk control mechanisms for raw materials Enterprises may adopt tools such as copper price linked quotation, futures hedging and long-term price locking to hedge drastic copper price fluctuations, optimize quotation models for overseas projects and avoid cost losses of long-cycle orders.
Enhance coordination with industrial associations and regulate competition in overseas markets Industrial associations shall guide enterprises to participate in bidding for overseas projects rationally, crack down on below-cost predatory bidding and jointly safeguard the brand of Chinese cables. They shall also promote mutual recognition between domestic and international testing institutions to reduce repeated testing costs for enterprises.
6. Conclusion
The global wave of AI computing center construction brings major opportunities for the export transformation of China's cable industry. Represented by LSZH cables, special cables have become rigidly required products for high-end overseas data center projects. The case of the sample enterprise, which achieved a 125.9% year-on-year export growth in the first half of 2026, demonstrates that with a complete industrial chain, special cable technology, international certifications and localized services, Chinese cable enterprises can break away from low-end price wars and realize rapid growth in overseas business.
Meanwhile, enterprises must face risks including copper raw material volatility, international certification barriers, overseas compliance risks and low-price competition. Seizing the window of global computing infrastructure development, the cable industry shall promote product upgrading from ordinary wires to high-value-added special cables and transform export modes from single product exports to the export of systematic solutions, continuously improving the competitiveness of China's cable industry in the global supply chain of computing infrastructure.
References
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