South Korea's Gaon Cable signs $2.7B busduct deal with U.S. tech firm

May 18 (Asia Today) -- Gaon Cable has signed a busduct supply contract worth up to 4 trillion won, or about $2.7 billion, with a major U.S. technology company for artificial intelligence data centers.

Gaon Cable said Monday that its U.S. subsidiary LSCUS signed a five-year long-term supply agreement with the unnamed U.S. company.

Under the deal, Gaon Cable will supply busduct systems to dozens of AI data centers in the United States each year. Deliveries will begin this year with about 50 billion won, or about $34 million, in supplies. The cumulative value could exceed 4 trillion won (US$2.68 billion) by 2030.

Busduct systems are large-capacity electrical distribution systems used to deliver power safely and efficiently inside buildings and industrial facilities.

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The company said the contract is significant because it is a long-term agreement rather than a one-time order. It added that sales could grow further as AI data center construction expands.

"This is the result of LS Cable & System's global sales capabilities and the local response capabilities of our U.S. subsidiary," said Byun Jung-il, head of LS Cable & System's busduct division. "Following last year's contract with another Big Tech company, we are rapidly expanding supply to U.S. AI data centers."

LS Cable & System is strengthening a global supply network linking South Korea, North America and Vietnam with affiliates including Gaon Cable and LS Eco Energy.

Initial supply for the latest contract will come from LS Cable & System's Indong plant in Gumi, North Gyeongsang Province. Gaon Cable is also reviewing plans to add busduct production facilities at its Jeonju plant.

LS Cable & System's Mexico production unit, scheduled for completion in 2026, is also expected to serve as a key manufacturing base. The company announced in January that it would expand its Mexico investment to 230 billion won, or about $158 million, to improve supply stability and delivery competitiveness in North America.

LS Eco Energy is also expanding in the AI data center market. It recently secured busduct and cable supply contracts for large data centers in Malaysia and Vietnam and is moving to expand production of fiber-optic cables.

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260518010004847