Gaon Cable lands W200b US AI data center deal

Gaon Cable has secured a 200 billion won ($143.4 million) busduct supply deal with a major US cloud operator for a 250-megawatt AI data center project, marking its largest single-building data center contract. Deliveries will continue through 2027, and the company is discussing follow-up orders potentially worth two to three times the initial contract. The deal adds an AI cloud service provider to Gaon Cable's North American customer portfolio, which already includes big tech and generative AI companies with previous orders totaling 110 billion won.

Gaon Cable has secured a 200 billion won $143.4 million busduct supply deal with a major US cloud operator, expanding its presence in North America’s fast-growing AI data center market. The company said Thursday that its US manufacturing subsidiary, LS Cable & System USA, would supply busduct power distribution systems for a 250-megawatt AI data center project. Busducts are used to deliver large amounts of electricity efficiently within power-intensive facilities. The contract represents LSCUS’ largest data center project for a single building. Deliveries will continue through 2027. Gaon Cable is also discussing follow-up orders potentially worth two to three times the initial contract, according to the company. The deal adds an AI cloud service provider to Gaon Cable’s North American customer portfolio, which already includes big tech and generative AI companies. Previous orders from those customers totaled 110 billion won. To meet rising demand, parent company LS Cable & System plans to triple its busduct production capacity this year by expanding its plant in Gumi, North Gyeongsang Province, and completing a new facility in Mexico. “As AI data centers become larger and more densely equipped, power distribution infrastructure is becoming increasingly important,” Gaon Cable CEO Jeong Hyeon said. “We will aggressively target the North American market by combining our busduct and medium-voltage cable portfolios.” Founded in 1947 as Korea’s first cable manufacturer, Gaon Cable was acquired by LS Cable & System in 2018. The two companies jointly established LSCUS in 2017, with Gaon Cable initially holding an 18 percent stake. Gaon Cable acquired LS Cable’s remaining 82 percent stake in 2024 as part of a restructuring aimed at streamlining its North American operations. hyejin2@heraldcorp.com