LS Cable & System Wins $3 Billion U.S. Data Center Power Contract in Record Deal for Korean Industry
May 18, 2026
LS Cable & System Wins $3 Billion U.S. Data Center Power Contract in Record Deal for Korean Industry
LS Cable & System, a leading South Korean cable and power equipment manufacturer, announced on Tuesday that its subsidiary Gaon Cable has secured a landmark 4 trillion won (approximately $3 billion) contract to supply busducts—critical power distribution equipment—for dozens of data centers across the United States. The deal, signed through Gaon Cable's U.S. subsidiary LSCUS, marks the largest single order ever won by Korea's cable and power equipment industry, underscoring the nation's growing role in the global data center supply chain.
The five-year long-term agreement, set to run through 2030, was signed with a major U.S. big tech company, which was not named in the announcement. The contract calls for the delivery of busducts, which are used to efficiently distribute electrical power within large-scale computing facilities, to support the rapid expansion of AI-driven data center infrastructure in North America. Initial production will take place at LS Cable & System's Indong plant in Gumi, North Gyeongsang Province, with plans to scale up supply through the company's 230 billion won subsidiary in Mexico, which is expected to be completed later this year, as well as Gaon Cable's Jeonju plant.
This latest win follows a string of strategic moves by LS Cable & System to deepen its footprint in the North American market, where demand for data center power solutions has surged amid the AI boom. The company previously secured a major order through its extra-high-voltage cable subsidiary LS Eco Energy, and has also recently signed a series of busduct and cable supply contracts in Southeast Asia, including projects in Malaysia and Vietnam. "This achievement combines LS Cable & System's global sales capabilities with the local response capabilities of Gaon Cable's U.S. subsidiary," said Byun Jung-il, head of LS Cable & System's busduct business division. "Following last year's large-scale contract with a big tech company, this order allows us to rapidly expand our supply to AI data centers in the United States."
The deal highlights the escalating competition among cable and equipment manufacturers to serve hyperscale data center operators, which are racing to build out capacity to support generative AI and cloud computing workloads. For LS Cable & System, the contract not only solidifies its position as a key supplier to the world's largest tech firms but also signals a broader shift in the industry toward long-term, high-value partnerships. As AI data centers require increasingly robust and reliable power distribution systems, orders of this magnitude are expected to become more common, driving growth for specialized infrastructure providers across the globe.
Source: sedaily
