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A view of Gaon Cable's U.S. production subsidiary LSCUS. / Gaon Cable

Gaon Cable is supplying 200 billion won worth of busducts to mega-scale artificial intelligence (AI) data centers in the U.S. By expanding its client base beyond global big tech and generative AI companies to include AI cloud operators, and currently negotiating additional projects two to three times the size of the present contract, the company is accelerating the expansion of its North American AI data center business.

According to Gaon Cable on August 20, its U.S. subsidiary LSCUS will supply busducts totaling 200 billion won for a data center project operated by a local AI cloud provider. Shipments will be carried out sequentially through 2027.

This project encompasses a 250 MW AI data center, the largest single-building facility among all data centers to which LSCUS has supplied busducts. As AI data centers housing large-scale GPU servers expand into several hundred megawatts, demand for power distribution infrastructure that stably supplies massive amounts of internal electricity is growing in tandem.

Through this contract, LSCUS has broadened its client base to include AI cloud service providers alongside global tech giants and generative AI firms. In particular, negotiations are underway for additional projects two to three times the current contract volume, pointing to the likelihood of even larger order volumes ahead.

Production capacity is also expanding to match growing demand. LS Cable & System is expanding its Gumi plant in North Gyeongsang Province and building a production subsidiary in Mexico. Once both manufacturing facilities are completed by the end of this year, busduct production capacity is projected to surge to approximately three times current levels.

Gaon Cable CEO Jeong Hyun stated, "With AI data centers scaling up and becoming increasingly dense, the importance of power distribution infrastructure is growing even further. Leveraging a portfolio that encompasses busducts and medium-voltage (MV) cables, we will further intensify our push into the North American AI data center market."

                                                                                                          Lee Seo-yeon