LS Cable to Supply Power Systems to US Big Tech Data Centers... 500 Billion Won Deal Over 3 Years
First Major Deal with Global Big Tech
Supplying to Data Centers Under Construction in North America
Supply Worth 20 Billion Won to Begin This Year
LS Cable will supply a high-capacity power supply system to the artificial intelligence (AI) data centers of global big tech companies.
On November 5, LS Cable announced that it has signed a three-year framework agreement to supply busduct (electrical wiring systems) to Company A in the United States. After passing evaluations on delivery, technology, and quality, LS Cable has been registered as a global supplier for Company A. Through this contract, LS Cable will supply its products to data centers that Company A is building in North America and other regions.
Although the exact volume has not been finalized, the company expects to begin supplying products worth approximately 20 billion won this year, with the total amount projected to exceed 500 billion won over the next three years. LS Cable noted that the supply volume could increase further and that it is also in discussions for a contract with another global big tech company, Company B.
A busduct is a system that distributes high-capacity power by arranging plate-shaped conductors inside a metal case. Compared to conventional cables, it has lower loss, heat generation, and fire risk, making it a key infrastructure for high-power facilities such as data centers.
Kim Wootae, Head of Power Distribution Solutions at LS Cable, stated, "This contract marks our first large-scale deal with a global big tech company and will serve as an important starting point for our busduct business to grow into a multi-hundred-billion-won annual revenue stream in the data center market. We aim to secure leadership in the power infrastructure competition of the AI era."
LS Cable is strengthening its global busduct production system connecting Korea, North America, and Vietnam to respond to the increasing demand for data center power infrastructure. In particular, once the new plant under construction in Mexico is completed, the company expects to further enhance supply efficiency and delivery competitiveness for North American customers.
Subsidiary LS Eco Energy is also accelerating its efforts to target the Southeast Asian market, using its production subsidiary in Vietnam (LSCV) as a base. In October, the company supplied busduct systems to a 50MW hyperscale data center in Indonesia and is expanding deliveries to large-scale projects by big tech companies.
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An LS Cable official said, "LS Eco Energy will focus on the Southeast Asian market centered on Vietnam, while the LS Cable Mexico plant will target the North American market. Together with Korea, we plan to establish a 'global production hub.'"
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