Gaon Cable wins first bus duct deal with US generative AI data center, worth 60 billion won

Gaon Cable announced Tuesday that its US subsidiary LSCUS has signed a contract to supply bus ducts to a generative AI company's data center.

Bus ducts are critical power distribution components that deliver stable electricity inside data centers, and are considered essential infrastructure for AI data centers that consume power at massive scale.

The deal is significant because it marks LSCUS's expansion of its customer base beyond global big tech firms to include generative AI companies. The contract is valued at approximately 60 billion won ($43.4 million), and additional orders are expected as the data center scales up.

LSCUS has been strengthening its position in the US AI data center market after securing long-term bus duct supply agreements with global big tech companies totaling more than 5 trillion won ($3.23 billion).

Gaon Cable is also pushing deeper into the US AI data center market through its cable business. Earlier this month, it signed a contract to supply medium-voltage cables to a US AI data center power grid, worth approximately 35 billion won ($25.3 million). The company expects related sales to exceed 100 billion won ($72.4 million) this year.

"Building on the technical expertise and supply experience we have accumulated as South Korea's No. 1 power distribution cable maker, we will continue to expand our push into the US AI data center power infrastructure market," Gaon Cable CEO Jeong Hyeon said.

LSCUS posted sales of approximately 135 billion won ($97.7 million) in the first quarter of this year, up more than 20 percent from the same period last year. Driven by LSCUS's performance, Gaon Cable recorded first-quarter sales of 763.6 billion won ($552.6 million) and operating profit of 27.8 billion won ($20.1 million) — its best first-quarter earnings on record.