Gaon Cable wins first power plant cable order from US big tech, worth W50b

Gaon Cable announced Tuesday it will supply distribution cables worth about 50 billion won ($34.1 million) for a power plant project being developed by a major US big-tech company.

It marks the first time Gaon Cable has exported distribution cables for a power plant to a US big-tech firm. The project is part of the tech company's own initiative to build dedicated power plants to ensure a stable electricity supply for its AI data centers.

Global big-tech companies have recently moved to build their own power plants to meet the energy demands of their expanding data center operations as AI growth accelerates.

Gaon Cable has been deepening its ties with global big-tech firms through its US subsidiary LSCUS, which has signed long-term supply agreements for bus ducts for AI data centers worth more than 5 trillion won. With this latest contract, the parent company has extended its reach into power source infrastructure by taking on cable supply for power plants.

The string of orders has driven Gaon Cable's earnings sharply higher. The company posted consolidated sales of 1.63 trillion won and operating profit of 64 billion won in the first half of this year, up 27.3 percent and 41.8 percent, respectively, from the same period last year. US exports are also growing rapidly, with this year's total forecast to reach about 300 billion won — roughly triple last year's level.

"The distribution cable market is growing as fast as the transmission market on the back of the AI data center boom," said Jung Hyun, chief executive of Gaon Cable. "We will leverage our position as the No. 1 player in Korea's distribution cable market to supply both cables and power equipment, and press ahead with our push into global markets."