Gaon Cable has landed its inaugural project linked to the global electric vehicle (EV) supply chain, receiving an order to provide busduct systems valued at approximately $38 million (60 billion won) for an artificial intelligence (AI) data center run by a worldwide EV firm.
The company announced that its US subsidiary, LSCUS, will supply the busduct systems for the facility, representing another advancement in broadening its footprint in the rapidly growing AI power infrastructure sector.
The recent order expands LSCUS' clientele beyond large global tech firms to encompass a significant electric vehicle maker, the company stated.
Also Read: Japan Unveils $2.3 Trillion Investment Plan for Next 14 Years
Busducts are systems for distributing power that transport electricity from a data center's primary power source to servers and racks.
Commonly referred to as the "arteries" of AI data centers, they have grown more essential as computing tasks demand increased power density and more dependable electrical infrastructure.
Gaon Cable stated that the market for AI data center power infrastructure has significant entry barriers, as suppliers are required to undergo strict quality verification to secure contracts. The company stated that LSCUS is becoming one of the leading five busduct suppliers globally in a market historically dominated by European electrical equipment producers.
The firm noted it is in talks for more supply options with the same client, boosting exports to the US and increasing sales linked to AI data centers to assist the company in reaching its best annual results ever.
Gaon Cable stated that it is the sole company globally able to provide both power transmission cables and power distribution busducts, enabling it to enhance its standing in the US.
Earlier, Gaon Cable became a significant beneficiary of the artificial intelligence (AI) data center surge in the US., as its US subsidiary LSCUS acquired multiple power infrastructure contracts associated with initiatives by global tech leaders like Google, Meta, and Amazon.
Also Read: Jaishankar and South Korean FM Discuss Strategic Ties in Seoul
LSCUS has been successful in obtaining bus duct supply contracts for AI data centers since the previous year and recently landed more projects valued at roughly 4 trillion won ($2.9 billion), speeding up its growth in North America.
The increasing focus on the company revolves around bus ducts, a product that has historically garnered less interest than cables, transformers, or switchgear but is now increasingly seen as an essential element of AI-era power infrastructure.
Also Read: Qualcomm to Provide Custom Chip-Design Services to ByteDance
The market is quite different from the traditional cable industry. Cable manufacturers mainly cater to utilities and construction companies, whereas bus duct suppliers collaborate closely with data center operators, semiconductor producers, and electrical engineering businesses. Since power interruptions can instantly impact operations, customers highly value reliability and established performance histories.