Value context and insight. lkm@koreatimes.co.kr
Gaon Cable lands 1st global EV supply chain deal with AI data center project
Gaon Cable's U.S. subsidiary, LSCUS, in Tarboro, N.C. / Courtesy of Gaon Cable
By Lee Kyung-min
Gaon Cable has secured its first project tied to the global electric vehicle (EV) supply chain, winning an order to supply busduct systems worth about $38 million (60 billion won) for an artificial intelligence (AI) data center operated by a global EV company.
The company said Friday that its U.S. subsidiary, LSCUS, will provide the busduct systems for the facility, marking another step in expanding its presence in the fast-growing AI power infrastructure market.
The latest order broadens LSCUS' customer base beyond global big tech companies to include a major electric vehicle manufacturer, the company said.
Busducts are power distribution systems that deliver electricity from a data center's main power source to servers and racks.
Often described as the "arteries" of AI data centers, they have become increasingly important as computing workloads require higher power density and more reliable electrical infrastructure.
Gaon Cable said the AI data center power infrastructure market has high barriers to entry because suppliers must pass rigorous quality verification before winning contracts.
The company said LSCUS is emerging as one of the world's top five busduct suppliers in a market that has long been led by European electrical equipment manufacturers.
The company said it is discussing additional supply opportunities with the same customer, expanding exports to the United States and rising sales related to AI data centers to help the company achieve its highest annual performance on record.
Gaon Cable said it is the only company in the world capable of supplying both power transmission cables and power distribution busducts, allowing it to strengthen its position in the U.S. AI data center power infrastructure market through an integrated product portfolio.
This article was published with the assistance of generative AI and edited by The Korea Times.