Gaon Cable(000500) said on the 28th that it will supply $50 billion won worth of distribution cables for a power plant construction project by U.S. big tech corporations.
The project is a proprietary power plant initiative pursued by U.S. big tech corporations to secure stable electricity for artificial intelligence (AI) data centers.
Gaon Cable said it expects this contract to lead to expanded participation in follow-up power infrastructure projects.
With the recent spread of Generative AI, global big tech companies are moving to secure power by directly building not only data centers but also power plants.
As stable power supply emerges as the core of AI competitiveness, investment in power sources is rapidly expanding.
Gaon Cable, through its U.S. subsidiary LSCUS, previously signed a long-term contract worth 5 trillion won to supply bus ducts for AI data centers to global big tech companies. This time, the headquarters also took on the supply of cables for power plants, expanding its business scope into power source construction.
Gaon Cable expects exports this year to increase to about 300 billion won, roughly three times last year's level.
Jung Hyun, CEO of Gaon Cable, said, "With the spread of AI data centers, not only the transmission market but also the distribution market is growing rapidly," adding, "Based on our No. 1 competitiveness in the domestic distribution cable market, we will strengthen our push into the global market by supplying both cables and power equipment."