Japanese cable maker Fujikura (TYO:5803) plans to invest up to 260 billion yen to expand its fiber optic cable production in the U.S., betting on continued growth in data centers fueled by the rise of artificial intelligence, Nikkei Asia reported Wednesday, citing a top offical.

The company will also allocate 40 billion yen to domestic investments in Japan, bringing the total capital spending unveiled in March to as much as 300 billion yen, with the regional breakdown previously undisclosed, the news daily said.

Fujikura President Naoki Okada described the demand for fiber optic cables as "enormous," adding that the company aims to secure a solid competitive advantage by expanding production capacity while simultaneously introducing innovative manufacturing technologies, the publication said.

In a midterm business plan released Tuesday, the company set a revenue target of 1.6 trillion yen for the year ending March 2029, representing a 35% increase from the previous fiscal year, the report said.

Operating profit is projected to reach 315 billion yen over the same period, marking a 67% gain, it added.

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