Gaon Cable wins 120 billion won order from U.S. Big Tech, steps up push into AI data center market

[Financial News] Gaon Cable is stepping up its push into the AI data center market by supplying 120 billion won worth of distribution cables to a global cloud company in the United States. Its strategy is to strengthen its position in the North American power infrastructure market by expanding local production capacity and securing new customers. 
Gaon Cable said on the 29th that its U.S. production subsidiary, LSCUS, will supply a total of 120 billion won worth of medium-voltage (MV) distribution cables to one global cloud company. The two sides are also discussing additional supply. 
This is the largest distribution cable supply contract by a domestic company to a single global Big Tech firm. The cables are scheduled to be supplied in phases to multiple AI data center projects in the United States from October this year through the first half of next year.
Gaon Cable has supplied power infrastructure products to major global Big Tech companies and U.S. neocloud companies in cooperation with LS Cable & System. The company said, “This contract has enabled us to expand our customer base to include a new global cloud company.” 
The construction of campus-style AI data centers, in which multiple data center buildings are developed as a single complex, has been increasing recently in the United States. Accordingly, demand is also growing for distribution cables that connect buildings to substation equipment, in addition to bus ducts that supply large amounts of power within data centers. 
Gaon Cable plans to expand its local 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 to double its production capacity from current levels through further expansion next year.
Revenue growth is also expected for the U.S. subsidiary. LSCUS’s revenue is projected to nearly double from about 440 billion won last year to about 870 billion won this year, and reach 1.5 trillion won next year.
A Gaon Cable official said, “This contract is an achievement that secures a new global Big Tech customer based on our competitive edge in local U.S. production and demonstrates the growth potential of our distribution cable business.” The official added, “We will accelerate our push into the North American AI data center power infrastructure market by expanding production capacity and strengthening our customer base.” 

[email protected] Lim Su-bin Reporter