Cable supply for US AI data centers
Gaon Cable is stepping up its efforts in the AI data center (AIDC) power infrastructure market after securing a global US big tech company as a customer. By winning a large supply contract based on its US manufacturing competitiveness, the company has further strengthened its position in the North American market.
Gaon Cable will supply a total of 120 billion won worth of medium-voltage (MV) distribution cables to a global cloud company through its US manufacturing subsidiary LSCUS. Deliveries will take place in stages from October 2026 through the first half of 2027 for multiple AI data center projects in the United States, and additional supply contracts are under discussion.
The contract is considered the largest distribution cable supply deal by the South Korean cable industry with a single global big tech company. It is particularly significant as an example of supplying essential infrastructure to meet rapidly growing data center power demand alongside the growth of the AI industry.
Gaon Cable has supplied power infrastructure products to global big tech companies and US neocloud companies through cooperation with LS Cable & System. With this contract, it is expanding its customer base to include another global cloud company and increasing its presence in the North American AI data center market.
In the United States, construction of so-called campus-style AI data centers, which bring multiple data centers together in a single complex, has recently been increasing. As a result, demand is growing rapidly not only for bus ducts that supply power inside data centers but also for distribution cables connecting buildings and substation equipment.
Production expansion and revenue outlook
Gaon Cable is also expanding production capacity at its US manufacturing subsidiary LSCUS to meet growing demand. It plans to start operating a new distribution cable production line in the fourth quarter of 2026 and double capacity from its current level through a further expansion in 2027.
The large order also supports a positive earnings growth outlook. LSCUS revenue is expected to nearly double from approximately 440 billion won in 2025 to approximately 870 billion won in 2026. It is expected to expand to 1.5 trillion won in 2027, marking a period of substantial growth.
A Gaon Cable representative said, "This contract is significant because we have secured a new global big tech customer based on our US manufacturing competitiveness," adding, "Having demonstrated the growth potential of our distribution cable business, we will further strengthen our efforts in the North American AI data center power infrastructure market by expanding production capacity and diversifying our customer base."
Industry observers say Gaon Cable is emerging as a key company in the power infrastructure supply chain as the data center construction boom driven by AI adoption continues. In particular, its stable supply capabilities and competitive delivery times, supported by its US production base, are expected to help it secure additional orders.
Original Korean article: businessreport.kr
English brief by Korea Wind Intelligence, koreawindintel.com
