Gaon Cable is accelerating its entry into the North American AI data center market by signing a large-scale power distribution infrastructure supply contract with a U.S. artificial intelligence (AI) cloud provider.
The company's U.S. subsidiary, LSCUS, announced on August 20 that it will supply bus ducts worth approximately 200 billion won for a U.S. AI cloud data center project.
Bus ducts are power distribution systems designed to efficiently supply large amounts of electricity. Demand for these systems has surged recently due to increased investments in AI cloud data centers that are building large-scale graphics processing unit (GPU) computing servers.
The contract's supply volume is set to be delivered in phases by 2027, including the largest single project in LSCUS's history, a 250MW AI data center.
Gaon Cable is also in discussions for additional projects that could be two to three times larger than this contract, indicating that future supply volumes are expected to grow significantly.
In line with the expansion of its orders, the parent company, LS Cable, is significantly increasing its production capacity. By the end of this year, with the expansion of its Gumi plant in South Korea and the completion of its production facility in Mexico, bus duct production capacity is expected to triple.
Jung Hyun, CEO of Gaon Cable, stated, "As AI data centers become larger and more densely packed, the importance of power distribution infrastructure is increasing. We will strengthen our efforts in the North American AI data center market based on our product portfolio that includes bus ducts and MV cables."
* This article has been translated by AI.
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