Gaon Cable, a subsidiary of LS Cable, has secured a supply contract worth approximately 4 trillion won ($3 billion) for busducts to be used in artificial intelligence (AI) data centers in the United States. This marks the largest supply agreement in the domestic cable and electrical equipment industry to date.
On May 18, Gaon Cable announced that its U.S. subsidiary, LSCUS, has entered into a long-term supply contract with a major American company for high-capacity power systems, specifically busducts, over the next five years.
Under this contract, Gaon Cable will supply busducts to dozens of AI data centers across the U.S. annually, starting with an estimated 50 billion won this year. By 2030, the total supply volume is expected to exceed 4 trillion won.
Busducts consist of insulated copper and aluminum conductors housed within a modular metal casing. Unlike traditional cables, which require significant space to manage the substantial power demands of AI data centers, busducts can stack conductors, significantly enhancing space efficiency.
Notably, this contract is significant not only for its scale but also because it is a long-term framework agreement rather than a one-time order.
Byun Jeong-il, head of LS Cable's busduct division, stated, "This achievement combines LS Cable's global sales capabilities with the local responsiveness of Gaon Cable's U.S. subsidiary. Following last year's large-scale contract with a major tech company, we are rapidly expanding our supply to U.S. AI data centers with this new order."
The initial supply will be sourced from LS Cable's manufacturing facility in Gumi, South Korea, while Gaon Cable is considering establishing new busduct production facilities at its Jeonju plant.
LS Cable's Mexican production subsidiary, set to be completed in 2026, will also serve as a key production hub. In January, LS Cable announced plans to increase its investment in Mexico to a total of 230 billion won, aiming to enhance supply stability and delivery competitiveness through a local production system in North America.
* This article has been translated by AI.
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