Gaon Cable rides US AI infrastructure boom

Gaon Cable's production facility in Gunpo, Gyeonggi Province (Gaon Cable)

Gaon Cable, a subsidiary of LS Cable & System, said Thursday it has supplied transmission cables worth millions of dollars for a solar power grid project in the US, as surging artificial intelligence-driven electricity demand fuels investment in power infrastructure.

The rapid expansion of AI data centers has intensified concerns over power shortages in the US, driving demand for new power generation facilities and grid upgrades.

Industry observers expect investment in US energy infrastructure to continue rising, supported by growing spending on AI-related projects and broader efforts to strengthen power networks.

Gaon Cable has also secured a cable supply contract for an AI data center in the US, further expanding its presence in the market. The company expects its US-related orders to double to 200 billion won ($131 million) this year from 100 billion won last year.

Its US subsidiary, LSCUS, has also posted strong growth. The company previously secured a long-term bus duct supply contract worth 5 trillion won and is expanding its customer base to include generative AI companies.

"High-value products for AI data centers and renewable energy projects are increasingly contributing to our profitability," said Jeong Hyeon, CEO of Gaon Cable. "We will continue to strengthen our portfolio with products that offer greater added value."

stlee0329@heraldcorp.com