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

Gaon Cable is expanding its presence in the artificial intelligence (AI) data center market by supplying 120 billion won worth of power distribution cables to a global U.S. tech giant. The company also plans to double its U.S. production capacity to meet growing demand for power infrastructure in North America.

According to Gaon Cable on Oct. 29, its U.S. production subsidiary, LSCUS, will supply a total of 120 billion won worth of medium-voltage (MV) distribution cables to a global cloud company. Discussions are also underway for additional supplies.

The cables will be delivered in stages to multiple AI data center projects in the United States from October this year through the first half of next year. The company said the deal represents the largest supply of distribution cables by a Korean company to a single global tech giant.

Gaon Cable has worked with LS Cable & System to supply power infrastructure products to major global tech companies and U.S. neocloud companies. The latest contract expands its customer base to include data centers operated by a new global cloud company.

Campus-style AI data centers, which bring together multiple data center buildings within a single complex, have recently been expanding across the United States. As a result, demand is growing not only for bus ducts that deliver large amounts of electricity within data centers but also for distribution cables that connect buildings, substations and other facilities.

Gaon Cable plans to expand its U.S. production capacity to meet rising demand. LSCUS will begin operating a new distribution cable production line in the fourth quarter of this year and plans further expansion in 2027 to double its current production capacity.

Revenue at the U.S. subsidiary is also expected to grow rapidly. LSCUS revenue is projected to nearly double from approximately 440 billion won last year to around 870 billion won this year. The company expects revenue to reach 1.5 trillion won next year, more than triple last year's level.

"This contract demonstrates our ability to secure a new global big tech customer based on our competitive U.S. production capabilities and confirms the growth potential of our distribution cable business," a Gaon Cable official said. "We will accelerate our expansion into the North American AI data center power infrastructure market by increasing production capacity and strengthening our customer base."

                                                                                                           Son Kang-hoon