Gaon Cable, a subsidiary of LS Cable & System, has secured a 120 billion won ($90 million) cable supply deal with a global cloud provider in the US, capitalizing on surging demand for power infrastructure driven by the AI data center boom.
The company said Wednesday that its US manufacturing subsidiary, LSCUS, will supply medium-voltage power distribution cables for multiple AI data center projects across the US from October through the first half of 2027.
The deal marks the largest single-customer distribution cable contract secured by a Korean company from a global tech firm, according to Gaon Cable. The company is also discussing additional orders.
Gaon Cable has been supplying power infrastructure products to major technology companies and US cloud operators in cooperation with LS Cable & System. The latest contract adds another global cloud provider to its customer base.
Demand for distribution cables is accelerating as US tech companies develop large-scale AI data center campuses comprising multiple buildings. These facilities require extensive power infrastructure, including bus ducts for distributing electricity within buildings and medium-voltage cables connecting data centers to substations.
To meet growing demand, LSCUS plans to begin operating a new cable production line in the fourth quarter and double its production capacity through further expansion in 2027.
The company's revenue is projected to nearly double to 870 billion won this year from approximately 440 billion won in 2025, before climbing to 1.5 trillion won in 2027.
"This contract secures a new global big tech customer by leveraging our US manufacturing capabilities," a Gaon Cable official said. "We will expand production capacity and our customer base to strengthen our position in the North American AIDC power infrastructure market."
jyoungseon8@heraldcorp.com
