Gaon Cable is expanding the application of its low-friction cables, validated in semiconductor factories, to artificial intelligence (AI) data centers. The company aims to broaden its data center business, which has primarily focused on bus ducts, to include low-voltage (LV) and medium-voltage (MV) cables, targeting the growing demand for AI power infrastructure in North America.
On September 2, Gaon Cable announced that it will extend the use of its low-friction cables for distribution in AI data centers. These cables feature improved outer materials that reduce friction during installation by approximately 30% compared to existing products.
With reduced friction, the installation distance can increase by up to 45%. The company explained that this also minimizes the number of pulling operations and intermediate connections, allowing for a 20-30% reduction in labor and construction costs. Gaon Cable has also secured patents for the core material technology related to these cables.
While the use of bus ducts is increasing in AI data centers to supply large amounts of power, distribution cables are also necessary depending on the building's structure and design. The low-friction cables are designed to reduce installation time for distribution cables within complex data center environments.
After supplying low-friction cables to North American semiconductor factories last year, Gaon Cable is now expanding their application to AI data centers. Both semiconductor and data center facilities require substantial power infrastructure, allowing the company to leverage its existing supply experience in the AI infrastructure sector.
This year, Gaon Cable secured its first order for approximately 35 billion won worth of cables for AI data center power networks in the United States. Additionally, through its subsidiary LSCUS, it has obtained long-term supply contracts for bus ducts worth up to 4 trillion won with major tech companies by 2030. Last month, the company also signed a contract to supply bus ducts worth 200 billion won to a U.S. AI cloud service provider for the year 2027.
Gaon Cable is also expanding its local production capacity in the U.S. LSCUS is investing about 76 billion won in its North Carolina plant to double its production capacity for power cables used in AI data centers.
By adding low-friction cables to its product lineup, which already includes bus ducts and LV and MV cables, Gaon Cable is expanding its offerings from external power networks to internal distribution within data centers. Jung Hyun, CEO of Gaon Cable, stated, "The importance of construction efficiency is growing in large industrial facilities such as semiconductor and battery plants."
* This article has been translated by AI.
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