Gaon Cable is accelerating its push into the AI (artificial intelligence) data center market by expanding distribution cable supply to a major global Big Tech company in the United States.
On the 29th, Gaon Cable announced that its U.S. production subsidiary, LSCUS, will supply a total of 120 billion won worth of distribution cables to a global cloud enterprise. This is the largest single order for distribution cables supplied by a domestic company to a major global Big Tech firm.
LSCUS plans to sequentially supply distribution cables to multiple AI data center projects underway in the U.S., from October this year through the first half of next year. Additional supply negotiations are also in progress.
Gaon Cable has previously collaborated with LS Cable & System to supply power infrastructure products to major global Big Tech companies and U.S. neocloud firms. With this contract, the company will expand its supply base to include AI data centers operated by a new global cloud enterprise.
Recently, there is a growing trend in the United States of developing campus-style AI data centers that consolidate multiple data center buildings into a single site. Consequently, demand for distribution cables connecting buildings and substation equipment, as well as bus ducts supplying high-capacity power within data centers, is also increasing.
To meet rising demand, LSCUS will begin operating a new distribution cable production line in the fourth quarter of this year. The company plans to double its production capacity compared to current levels through additional expansion next year.
Driven by large-scale orders, LSCUS’s revenue growth is also expected to gain momentum. Revenue, which was approximately 440 billion won last year, is projected to nearly double to about 870 billion won this year. It is forecast to reach 1.5 trillion won next year.
A Gaon Cable official stated, “This contract is a result of securing a new global Big Tech client based on local production competitiveness in the U.S., demonstrating the growth potential of our distribution cable business.” The official added, “We will accelerate our efforts to penetrate the North American AIDC power infrastructure market by expanding production capacity and strengthening our customer base.”
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