Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
Gaon Cable gains traction in US AI data center power infrastructure market
An aerial view of LSCUS in the United States / Courtesy of LS Cable & System
By Lee Gyu-lee
Gaon Cable, a subsidiary of LS Cable & System, is emerging as a key beneficiary of the artificial intelligence (AI) data center boom in the United States, as its U.S. subsidiary LSCUS secures a series of power infrastructure contracts linked to projects by global tech giants including Google, Meta and Amazon.
LSCUS has been winning bus duct supply contracts for AI data centers since last year and recently secured additional projects worth about 4 trillion won ($2.9 billion), accelerating its expansion in North America.
The growing attention surrounding the company centers on bus ducts, a product that has traditionally received less attention than cables, transformers or switchgear but is increasingly recognized as a critical component of AI-era power infrastructure.
Bus ducts are high-capacity power distribution systems designed to efficiently and reliably deliver large volumes of electricity. Unlike conventional cable systems that rely on multiple bundles of wires, bus ducts use copper or aluminum conductors enclosed within a metal housing, enabling the stable transmission of large electrical loads. Industry officials often describe them as “power highways” inside data centers.
Their importance has risen sharply as AI data centers require significantly higher power density than conventional facilities. Thousands, and sometimes tens of thousands, of graphics processing unit servers operate simultaneously, driving electricity demand to unprecedented levels. Industry estimates suggest next-generation AI data centers under development by major U.S. technology firms will require anywhere from several hundred megawatts to more than one gigawatt of electricity per facility.
As securing power capacity becomes a key competitive factor in the AI industry, demand for internal power distribution equipment is also increasing. Market research firm MarketsandMarkets forecasts the global data center bus duct market will grow from $5.3 billion in 2025 to $9.6 billion by 2032, fueled by generative AI adoption and continued hyperscale data center construction.
The market differs significantly from the conventional cable business. While cable manufacturers primarily serve utilities and construction firms, bus duct suppliers work closely with data center operators, semiconductor manufacturers and electrical engineering firms. Because power disruptions can immediately affect operations, customers place a premium on reliability and proven track records.
As a result, the market has long been dominated by global electrical equipment makers such as Siemens, ABB, Schneider Electric and Eaton. Industry observers say engineering expertise, installation experience and operating records are often more important than manufacturing capacity alone.
LS Cable & System has spent decades building its bus duct business and remains Korea’s leading supplier. Its products have been installed at major projects including Lotte World Tower, Samsung Electronics’ Pyeongtaek semiconductor campus, Marina Bay Sands in Singapore and Burj Al Arab in Dubai.
Industry officials say LSCUS’ recent success reflects the technological expertise and project experience accumulated by LS Cable & System, combined with local manufacturing and customer networks in the U.S.
The contracts are also seen as significant for Gaon Cable’s transformation. Traditionally known as a power cable manufacturer, the company is increasingly positioning itself as a supplier of AI data center power infrastructure.
In addition to bus ducts, Gaon Cable has been preparing to expand its power distribution cable business in the U.S. The company is building a portfolio that spans both external power networks and internal data center distribution systems.
“As AI becomes increasingly power-intensive, electricity infrastructure is emerging alongside semiconductors as a key source of competitiveness,” an industry official said. “Gaon Cable is a notable example of a traditional cable manufacturer transforming itself into an AI data center power infrastructure company.”