Gaon Cable Co., a South Korean power‑cable manufacturer, announced on October 28, 2026 that it had secured a 120 billion‑won ($90 million) supply contract with an unnamed U.S. cloud company. The order, to be fulfilled by LS Cable USA, the company’s U.S. subsidiary, involves a medium‑voltage power‑distribution cable system that will be delivered by the first half of next year.
The deal is framed as a key step in Gaon Cable’s expansion into the North American artificial‑intelligence data‑center (AIDC) market, a sector that demands high‑reliability power infrastructure to support massive computing workloads. The company said the order would support its efforts to grow production capacity and widen its client portfolio.
Gaon Cable is majority‑owned by LS Cable & System Ltd., South Korea’s leading wire and cable maker, with a stake of 81.62 percent. It operates a manufacturing plant in the United States, which will be the production site for this contract. The U.S. subsidiary, LS Cable USA, will handle the logistics and delivery of the cables, ensuring they meet the stringent requirements of data‑center power systems.
Medium‑voltage cables, defined in industry terms as power cables operating between 1 kV and 35 kV, are commonly used to distribute electricity within large facilities. They combine high current capacity with robust insulation, allowing data centers to maintain continuous power supply while minimizing losses. For AI‐heavy workloads, consistent and efficient power delivery is crucial, making such cables a priority component in new infrastructure.
While the customer name was withheld, reports indicate the order will enable the U.S. cloud provider to upgrade its data‑center sites with newer, more efficient power distribution capabilities. This aligns with a broader trend among cloud operators to invest in environmentally friendly, energy‑efficient hardware, a factor that is increasingly influencing purchasing decisions.
The contract underscores a growing partnership between Korean cable manufacturers and U.S. data‑center operators. Both parties have recognized the value of Korean engineering expertise and the U.S. market’s appetite for advanced infrastructure solutions. The collaboration is expected to spur technological knowledge exchange and further joint manufacturing initiatives.
Gaon Cable’s executive emphasized the company’s strategy to invest in research and development for high‑performance cable solutions that can withstand the demanding electrical loads of AI facilities. He added that the company plans to expand its production line in the U.S., which will also create local jobs and contribute to the domestic supply chain.
In the competitive field of power cable supply, Gaon Cable’s entry into the U.S. AIDC market marks a strategic diversification beyond its traditional markets in Asia. The company has previously supplied cables to telecommunications and industrial customers, but the new AIDC contract signals its intent to become a key player in high‑tech infrastructure.
To meet the delivery deadline of the first half of next year, LS Cable USA will likely scale its production and integrate quality assurance protocols tailored to U.S. regulatory standards. The company’s manufacturing plant has the infrastructure to handle medium‑voltage cable production, but additional resources may be allocated to expedite delivery and ensure compliance with the cloud provider’s specifications.
Looking ahead, the contract may pave the way for more orders from U.S. cloud operators and AI‑centric enterprises. If the partnership proves successful, Gaon Cable could become a preferred supplier for power distribution systems in the rapidly expanding U.S. data‑center sector. The move also illustrates a trend where Korean manufacturers leverage their expertise in cable technology to access high-growth markets abroad.
