LS Cable's Gaon Cable Wins $90 Million AI Data Center Cable Deal with US Cloud Provider

Gaon Cable, a subsidiary of South Korea's LS Cable & System, has secured a 120 billion won ($90 million) contract to supply medium-voltage power distribution cables to a global cloud provider in the United States, as surging AI data center construction drives demand for power infrastructure across the country.

The company said its US manufacturing subsidiary, LSCUS, will deliver the cables for multiple AI data center projects across the United States from October through the first half of 2027. The deal represents the largest single-customer distribution cable contract a Korean company has secured from a global technology firm, according to Gaon Cable, which added that it is in discussions for further orders.

The contract reflects accelerating demand for power distribution infrastructure as US technology companies develop large-scale AI data center campuses comprising multiple buildings. Such facilities require extensive electrical infrastructure, including bus ducts for distributing electricity within buildings and medium-voltage cables connecting data centers to substations. Gaon Cable has been supplying power infrastructure products to major technology companies and US cloud operators in cooperation with LS Cable & System, and the latest agreement adds another global cloud provider to its customer base.

To meet growing demand, LSCUS plans to begin operating a new cable production line in the fourth quarter and to double its production capacity through further expansion in 2027. Gaon Cable's revenue is projected to nearly double to 870 billion won this year from approximately 440 billion won in 2025, before climbing to 1.5 trillion won in 2027.

"This contract secures a new global big tech customer by leveraging our US manufacturing capabilities," a Gaon Cable official said. "We will expand production capacity and our customer base to strengthen our position in the North American AIDC power infrastructure market."

The deal underscores how the AI data center buildout is generating demand well beyond servers and chips, extending into the power distribution supply chain. As hyperscalers race to bring large campuses online, cable and electrical equipment makers with local US manufacturing capacity are positioning themselves as critical suppliers to the sector.