LS Cable & System announced Wednesday that it has secured a contract worth over 500 billion won ($345.3 million) to supply high-capacity power distribution systems to artificial intelligence data centers operated by a major US big tech company.
While the client firm has not been disclosed, the company said it will begin supplying bus ducts -- power distribution systems that efficiently deliver large volumes of electricity -- for data centers the client plans to build across North America. The order is valued at around 20 billion won this year, with total deliveries in excess of that amount expected over the next three years.
LS Cable said the contract represents its first large-scale partnership with a global tech giant, attributing the achievement to its strong performance in stringent evaluations of delivery reliability, technology and product quality. The company added that it is also in discussions for a similar agreement with another leading tech firm.
“This deal marks a key milestone for our data center business,” said Kim Woo-tae, head of the power distribution solutions division at LS Cable & System. “We aim to establish a leadership position in the power infrastructure market as the AI era unfolds.”
To meet growing demand for data center power infrastructure, LS Cable is expanding its global bus duct production network spanning Korea, North America and Vietnam. Its new plant under construction in Mexico is expected to significantly enhance supply efficiency and delivery competitiveness for North American customers once it becomes operational.
Meanwhile, its subsidiary LS Eco Energy is accelerating its expansion into Southeast Asia, leveraging its Vietnamese production unit, LS VINA Cable & System, as a regional hub. In October, the company supplied bus ducts for a 50-megawatt hyperscale data center in Indonesia, further strengthening its foothold in large-scale big tech projects.
hyejin2@heraldcorp.com
