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A view of LSCUS, Gaon Cable's U.S. manufacturing subsidiary. / LS Cable & System

Gaon Cable is accelerating its push into the U.S. data center market, broadening its customer base from global technology giants to generative AI companies as it strengthens its position in the AI power infrastructure sector.

According to the company on Monday, its U.S. subsidiary LSCUS recently signed a contract to supply busduct systems to a data center operated by a generative AI company identified only as Company O. The contract is valued at approximately 60 billion won ($44 million).

The deal is significant because it marks LSCUS's expansion beyond global Big Tech customers into the fast-growing generative AI sector.

Busducts are critical power distribution systems that deliver large amounts of electricity safely and efficiently within data centers. They are considered essential infrastructure for AI data centers, which consume significantly more power than conventional facilities.

The company expects additional orders as data center operators continue to expand their facilities.

LSCUS has recently strengthened its presence in the U.S. AI data center market by securing long-term busduct supply agreements worth more than 5 trillion won in aggregate with major global technology companies.

Gaon Cable says its competitive advantage lies in its ability to supply both power cables used in external grid connections and busduct systems used for internal power distribution within data centers.

The company's performance continues to improve. LSCUS posted first-quarter revenue of approximately 135 billion won this year, up more than 20% from about 110 billion won a year earlier.

Revenue related to AI data center projects is expected to grow by more than 300% this year compared with last year.

Earlier this month, Gaon Cable also signed a contract worth approximately 35 billion won to supply medium-voltage (MV) cables for a U.S. AI data center power network.

The company expects annual cable sales related to U.S. AI data centers to exceed 100 billion won this year.

"We will continue expanding our presence in the U.S. AI data center power infrastructure market based on the technological expertise and supply experience we have accumulated as South Korea's leading distribution cable manufacturer," said Jeong Hyun, chief executive officer of Gaon Cable.

                                                                                                            Lee Seo-yeon