Gaon Cable to supply bus ducts worth W200b to US AI cloud data center

Gaon Cable said Thursday that its US subsidiary LSCUS will supply bus ducts worth 200 billion won ($143 million) to an AI cloud data center project in the United States.

The project includes a 250 MW AI data center — the largest single-building project LSCUS has supplied to date. Bus ducts are power distribution systems that deliver large volumes of electricity reliably.

AI cloud data centers are infrastructure facilities that house large-scale GPU computing servers to provide AI processing services. As demand for AI computing has surged in recent years, AI cloud operators have rapidly stepped up investment in new data centers.

With this contract, LSCUS has expanded its customer base to include AI cloud operators, adding to its existing roster of global big-tech and generative AI companies. Deliveries will proceed in stages through next year. LSCUS is also in talks for additional projects two to three times the size of the current contract.

To keep pace with LSCUS's growing order book, LS Cable & System is scaling up its bus duct production capacity. Once an expansion at its factory in Gumi, North Gyeongsang Province, and a new production facility in Mexico are completed by the end of this year, bus duct output is expected to reach roughly three times its current level.

"As AI data centers grow larger and denser, the importance of power distribution infrastructure is only increasing," Gaon Cable CEO Jeong Hyeon said. "We will sharpen our push into the North American AI data center market, backed by a portfolio that spans bus ducts and medium-voltage cables."

Meanwhile, Gaon Cable posted consolidated sales of 1.63 trillion won and operating profit of 64 billion won in the first half of this year, both records for any first-half period. Sales rose 27.3 percent and operating profit climbed 41.8 percent compared with the same period last year.