South Korea's Gaon Cable Wins KRW 200 Billion Contract to Supply Busways for U.S. AI Data Center

en.Wedoany.com Reported - On August 20, South Korea's Gaon Cable announced that its U.S. subsidiary LSCUS has signed a busway supply contract worth KRW 200 billion (approximately USD 143 million to 150 million) with a U.S. AI cloud service provider. The products will be used in a 250MW-class AI cloud computing data center in the United States, with busways supplied according to independent power distribution systems for each building, and delivery will be carried out in phases through 2027.

This contract is the largest busway order LSCUS has ever received for a single-building data center. Busways are critical equipment for high-capacity power distribution within data centers, functioning as the "power trunk line" within a building, responsible for efficiently delivering power from transformers to individual server racks. As AI data centers scale up to hundreds of megawatts or even gigawatts, traditional cables can no longer meet the demands of power transmission density and heat dissipation. Busways, with their high current-carrying capacity and compact structure, are becoming the standard for large-scale data centers.

The buyer is an unnamed U.S. AI cloud service provider, and Gaon Cable completed the deal through its North American sales subsidiary LSCUS. The company stated that it is currently in discussions for additional projects, with the potential value of follow-up contracts expected to be 2 to 3 times the size of this order. If all are realized, it will significantly boost Gaon Cable's market share in the North American AI data center power distribution market.

Gaon Cable is a subsidiary of South Korea's LS Cable & System, specializing in communication and power distribution cables, with years of technical expertise in the busway sector. Previously, its main customers were large technology companies in South Korea and overseas. This contract marks an expansion of the company's customer base from traditional large tech firms and generative AI companies to specialized AI cloud service providers, helping to diversify customer risk and open new growth channels.

To meet the growing demand for data center orders, parent company LS Cable & System is simultaneously expanding busway production capacity. The existing plant in Gumi, North Gyeongsang Province, South Korea, is undergoing expansion, while the Mexico production base is expected to be completed and operational by the end of 2026. Once both expansion projects are completed, the company's total busway production capacity will increase to approximately three times its current level. This move also reflects the deep penetration of South Korean industrial manufacturers into the North American AI infrastructure supply chain.

According to industry research institutions, the global data center busway market is expected to grow at a compound annual growth rate of over 15% over the next five years, with North America emerging as the primary growth driver due to large-scale AI computing cluster construction. The KRW 200 billion order Gaon Cable has secured, along with potential follow-up orders, will provide significant support for its overseas business revenue over the next 2 to 3 years.