CRU: US market boom continues due to data centers and electrification

Data center power distribution needs support strong H1 demand

Americas wire and cable demand held firm through H1 2026, as data center and energy infrastructure buildouts, driven by wider electrification and power supply investments, more than offset weakness in traditional construction sectors such as residential. Power cables led the way, with both demand and regional production advancing, keeping medium-voltage lead times stretched and drawing in additional imports. The backdrop remains challenging, as the unraveling of the US–Iran Memorandum of Understanding (MoU) has kept oil prices, input costs, and logistics under pressure, but it is also accelerating the shift toward local supply.

US market continues to see uptick in localization due to Gulf conflict

As signs of resolution have faded in the Middle East conflict following the recent unraveling of the MoU signed between the US and Iran, uncertainty remains elevated for cable manufacturers in the Americas. Elevated oil prices, raw material cost, and supply challenges across cable conductors and insulation materials, and mounting logistical pressures remain key concerns.

Meanwhile, the conflict has continued to act as a meaningful catalyst for localizing industrial production, primarily in the US market. Ongoing pressures in the Strait have driven structural energy and supply-chain disruption, prompting a marked push toward onshoring, nearshoring, and domestic capacity maximization, supported in particular by resilience in aerospace- and defense-related cabling orders.

Updated figures show total regional cable demand rose 3.0% year over year in H1 2026, led by the US Nonresidential market drivers such as data centers, grid modernization, and renewables have sustained procurement despite weaker traditional end-use markets, including residential construction.

Power cables have been central to this growth story, posting 4.2% year-over-year demand growth in H1 2026 and 3.7% year-over-year growth in regional production. The ongoing development and distribution of US data center power systems, including on-site and behind-the-meter generation efforts, has supported both high production capacity among domestic original equipment manufacturers and increased imports from international players capturing this trend. As a result, lead times for medium-voltage power cabling have remained stretched since our last edition.

The second quarter of 2026 was a landmark period for wire and cable manufacturing investment in the Americas, with the US seeing a concentration of capacity announcements, M&A completions, and regulatory developments that collectively signal a structural shift in the domestic supply base. Data center construction, grid modernization, and the tariff-driven imperative to manufacture locally were common threads running through virtually every development.

Including the recent developments laid out in our June monitor release, Prysmian’s announcement of its $3.8-billion acquisition of Atkore lends further weight to this trend. The deal is expected to broaden Prysmian’s US electrical-infrastructure portfolio beyond wire and cable into conduit, fittings, and cable-management systems, creating a more integrated supplier for the data center, utility, and commercial construction markets. It also reflects the growing strategic premium attached to established North American manufacturing footprints and distribution channels as customers seek local, resilient supply chains for an accelerating pipeline of electrification investment. The transaction is expected to close by the end of 2026, subject to customary approvals.