Gaon Cable to Supply U.S. Tech Giant with W120 Billion in Distribution Cables... "Largest" by South Korean Firm
Largest-ever supply deal with a single big tech company
Deliveries to begin this month and continue through the first half of next year
Gaon Cable is accelerating its push into the AI data center (AIDC) power infrastructure market after securing a global U.S. technology giant as a new customer for its distribution cables.
Gaon Cable said on October 29 that its U.S. production subsidiary, LSCUS, had signed a distribution cable supply contract worth a total of 120 billion won with a leading global cloud services provider. The two companies are also discussing additional supply following the contract.
This is the largest distribution cable supply contract ever signed by a South Korean cable maker with a single global technology giant. The products will be delivered in stages to multiple AIDC project sites being developed across the United States from October 2026 through the first half of 2027.
Gaon Cable has supplied power infrastructure products to major global technology giants and U.S. neocloud companies in collaboration with LS Cable. With this contract, it is expanding its customer base to include a new global cloud company's AIDCs and strengthening its position in the North American market.
In recent years, campus-style AIDCs, where multiple data center buildings are developed as a single complex, have been expanding in the United States. As a result, demand is growing not only for bus ducts that supply large volumes of power within data centers, but also for distribution cables that connect buildings to substations and other facilities.
Gaon Cable is working to expand its U.S. production base to meet rapidly growing demand in North America. LSCUS will begin operating a new distribution cable production line in the fourth quarter of 2026 and plans to double its production capacity from current levels through further expansion in 2027.
Bolstered by large-scale orders, LSCUS is also expected to see rapid revenue growth. Revenue, which stood at about 440 billion won last year, is expected to nearly double to about 870 billion won this year and reach 1.5 trillion won next year.
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A Gaon Cable representative said, "This contract is an achievement that demonstrates our ability to secure a new global technology giant as a customer based on our competitive U.S. production capabilities and validates the growth potential of our distribution cable business. We will accelerate our push into the North American AIDC power infrastructure market by expanding production capacity and strengthening our customer base."
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