Additional supply under discussion

New distribution cable line set to begin operation in Q4 this year

A view of LSCUS, Gaon Cable's US production subsidiary. [Gaon Cable]
A view of LSCUS, Gaon Cable's US production subsidiary. [Gaon Cable]

Gaon Cable said Thursday that its US production subsidiary, LSCUS, will supply distribution cables worth 120 billion won ($90.6 million) to a global cloud company.

The deal is the largest distribution cable supply contract a Korean company has secured with a single global big tech firm. LSCUS will deliver the cables to multiple AI data center projects across the United States, with shipments beginning this month and continuing through the first half of next year. The subsidiary is also in discussions for additional supply.

Campus-style AI data centers — where multiple data center buildings are developed together as a single complex — have been expanding across the United States. The trend is driving demand not only for bus ducts, which carry large volumes of power within data centers, but also for distribution cables that connect buildings to substations and other electrical infrastructure.

To meet rising demand, LSCUS plans to bring a new distribution cable production line online in the fourth quarter of this year. Next year, the company intends to double its production capacity through further scale-up.

LSCUS has been securing a string of orders as AI infrastructure expands. In August, the subsidiary said it would supply bus ducts worth 200 billion won to an AI cloud data center project in the United States. The large-scale orders are expected to fuel sharp sales growth at LSCUS. Sales of roughly 440 billion won last year are projected to nearly double to around 870 billion won this year, and to reach 1.5 trillion won next year.

"This contract demonstrates our ability to win new global big tech customers on the strength of our local US production capabilities, and validates the growth potential of our distribution cable business," a Gaon Cable official said. "We will accelerate our push into the North American AI data center power infrastructure market by expanding production capacity and broadening our customer base."


yeongdai@heraldcorp.com