Gaon Cable will supply transmission cables to a US artificial intelligence (AI) data center power grid for the first time. Following its supply of power grids for solar power complexes, the company is now adding cables, and is expected to expand its US exports to around 200 billion won.
On Tuesday, Gaon Cable announced that it will supply approximately 35 billion won worth of cables for AI data center power grids through a US power infrastructure supplier.
This supply marks Gaon Cable's first entry into the AI data center power grid market. The company expects related sales to grow to around 100 billion won this year.
Gaon Cable already supplies approximately 100 billion won worth of cables annually to US solar power complex grid construction projects. With the addition of the AI data center power grid market, the company's US exports this year are projected to expand to around 200 billion won.
LSCUS, the company's US local subsidiary, is also growing rapidly. LSCUS recently secured long-term supply contracts for busducts (prefabricated electrical wiring systems) worth more than 5 trillion won in total with global big tech companies.
As a result, Gaon Cable has established a business structure capable of supplying both cables for AI data center external power grids and busducts for internal power distribution.
"We plan to strengthen our local business base in the US and cultivate the AI power infrastructure market as a core growth axis," Gaon Cable CEO Jung Hyun said. "In line with the expansion of the AI data center and renewable energy power grid markets, we expect to achieve record-high earnings this year."
Gaon Cable achieved record-high earnings in the first quarter of this year, driven by the expansion of high-value-added markets such as AI data center power infrastructure. Revenue and operating profit rose 19.4% and 27.2%, respectively, from a year earlier.
