The power distribution market, which supplies electricity to data centers, is emerging as a new growth sector. As demand for data centers from global big tech companies surges, the number of long-term supply contracts for power-related companies is increasing.
According to industry sources, Gaon Cable's U.S. subsidiary LSCUS has secured a series of long-term supply contracts worth trillions of won for bus ducts with global big tech firms.
This indicates that LSCUS has entered the core supply chains of these major companies. Typically, big tech firms select two to three key suppliers to establish long-term supply agreements.
AI data centers have a significantly higher power density compared to regular data centers, necessitating a stable supply of large amounts of power to thousands of GPU servers. This underscores the growing importance of power distribution systems.
Moreover, the capability of internal power distribution within data centers is becoming a critical factor in determining the competitiveness of AI infrastructure.
Bus ducts are a key power distribution product, serving as the conduit for delivering electricity to servers and racks within data centers, akin to the circulatory system of an AI data center.
They are recognized as essential infrastructure for AI data centers because they can distribute large amounts of power reliably while minimizing energy loss.
Bus ducts also offer advantages over traditional cables, such as shorter installation times and easier expansion of power supply lines when adding servers. Their utility is particularly high in facilities with dense power requirements, like AI data centers.
The global market has been dominated by a few European companies, including ABB, Siemens, and Schneider Electric. Recently, LSCUS has been rapidly expanding its presence within the supply chains of global big tech firms.
Given that power infrastructure for data centers can lead to significant losses in the event of power failures, vendor registration and quality verification are essential for clients. Factors such as years of accumulated supply performance, responsiveness to delivery schedules, and design capabilities are critical evaluation criteria.
An industry insider noted, "Bus ducts are not products that can be supplied immediately just because they have received certification. While supply shortages are intensifying, actual benefits are concentrated among companies that have verified quality and supply performance."
Meanwhile, Gaon Cable is expanding its supply of cables for U.S. AI data center power networks while also growing its bus duct business through LSCUS. The company has established a business structure that supplies both external power networks and internal power distribution solutions for data centers.
A power industry source stated, "The key to AI data centers is not only semiconductors but also stable power supply. Recently, market interest has shifted from semiconductors to power networks and power distribution infrastructure."
* This article has been translated by AI.
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