Japanese electrical equipment vendor Fujikura Ltd has announced it will push ahead with plans to ramp up production of optical fiber and cables to support the rising demand from AI data centers.

A lot of this demand is coming from the US, noted the company, which said it will look to increase production capacity up to approximately three times the current level at every one of its manufacturing locations in Japan and the US.

In total, Fujikura said it will invest a maximum of 300 billion yen ($1.9bn) to produce the fiber, while "closely monitoring market trends."

After a Memorandum of Understanding was signed by the governments of Japan and the US last year, Fujikara has been tasked with supplying optical fiber cables to support the growing demand for AI infrastructure in the US.

Following a board meeting last week, Fujikura said it has "resolved to adopt a policy to proceed with capital investment aimed at expanding production capacity for the optical fiber and optical fiber cable SWR/WTC."

SWR/WTC stands for Spider Web Ribbon/ Wrapping Tube Cable.

Tokyo-based Fujikura specializes in developing and manufacturing power and telecommunication systems products, which include devices for optical fibers, such as cutters and splicers.

The company said it will speed up its fiber production via a new factory, which is currently under construction at its Sakura plant in Chiba prefecture.

"This investment is intended to further address the growing demand for optical fiber cables in AI data center market while also expanding production for contributing to the enhancement of AI infrastructure in the US," said Fujikura in its announcement.

Founded in 1885, Fujikura has multiple offices across Japan, Asia, Europe, and North America, and has two offices in Morocco in Africa.