Gaon Cable to Supply Busducts Worth 4 Trillion Won to Major U.S. Big Tech Data Centers: "Largest Contract Ever"

KRW 50 Billion This Year, Cumulative Total to Exceed KRW 4 Trillion by 2030
Long-Term Supply of High-Capacity Power Systems for the Next Five Years
Initial Supply from Gumi Plant, New Production Facilities Considered for Jeonju Plant

Gaon Cable, a subsidiary of LS Cable, will supply busducts worth over 4 trillion won to large U.S. big tech artificial intelligence (AI) data centers. This is the largest supply contract in the history of the Korean cable and power equipment industry.

Gaon Cable announced on the 18th that its U.S. subsidiary, LSCUS, has signed a long-term supply agreement for high-capacity power systems—specifically busducts—with Company A in the United States, effective for the next five years.

Under this agreement, Gaon Cable will supply busducts annually to dozens of AI data centers across the United States.

The initial supply volume is expected to reach approximately 50 billion won this year, but the cumulative total by 2030 is projected to exceed 4 trillion won.

Exterior view of LSCUS, Gaon Cable's production and sales corporation in the United States. LS Cable.

Busducts are distribution systems that use flat conductors inside a metal casing to deliver high-capacity electrical power to buildings. Compared to conventional cables, busducts reduce energy loss by over 30% and lower the risk of fire or electric leakage.

The company emphasized that this is a significant long-term framework agreement rather than a one-off order. Given the expansion of AI data centers, there is a high likelihood that sales volume will increase further in the future.

Byun Jeongil, Head of the Busduct Business Division at LS Cable, stated, "This achievement is the result of combining 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 Big Tech Company B, this latest order further accelerates our expansion into the U.S. AI data center market."

LS Cable is establishing a global supply chain connecting Korea, North America, and Vietnam through partnerships with Gaon Cable, LS Eco Energy, and others.

The initial quantities for this contract will be supplied from LS Cable's Indong plant in Gumi, North Gyeongsang Province, while Gaon Cable is considering building new busduct production facilities at its Jeonju plant.

Additionally, LS Cable's Mexico manufacturing subsidiary, which is scheduled for completion this year, will serve as a key hub. Earlier, in January, LS Cable announced plans to increase its investment in Mexico to a total of 230 billion won. The company aims to ensure supply stability and delivery competitiveness through a local production system in North America.

LS Eco Energy has also recently secured consecutive contracts to supply busducts and cables to large-scale data centers in Malaysia and Vietnam, and is working to expand optical communication cable production as well.

This content was produced with the assistance of AI translation services.