[Alpha Biz= Paul Lee] Gaon Cable, a subsidiary of LS Cable & System, has secured a major contract to supply busduct systems worth approximately KRW 4 trillion to Meta, marking a significant step into the fast-growing AI data center power infrastructure market.

According to a regulatory filing on May 18, Gaon Cable will supply busducts to Meta’s AI data centers, with initial deliveries expected to begin this year. Industry sources estimate the first-year supply at around KRW 50 billion, with cumulative orders projected to exceed KRW 4 trillion by 2030.

The products will be jointly manufactured with LS Cable & System, with initial production taking place at its Indong plant in Gumi, South Korea. Gaon Cable plans to establish dedicated busduct production facilities at its Jeonju plant, while LS Cable’s newly expanded manufacturing base in Mexico—backed by a KRW 230 billion investment announced earlier this year—will also serve as a key production hub.

Busducts are metal-based power distribution systems designed to efficiently deliver large volumes of electricity within data centers. Compared with conventional cabling systems, they offer lower heat generation and reduced power loss, making them a critical solution for next-generation, high-density AI infrastructure.

Demand for such systems is surging globally as hyperscale AI data centers expand rapidly. These facilities require massive power capacity—often comparable to that of a nuclear power plant—driving the need for advanced electrical distribution solutions.

Industry analysts say the Meta deal positions Gaon Cable favorably in the global next-generation power solutions market. Meta, one of the most aggressive investors in AI infrastructure, is reportedly developing data centers with a combined capacity of around 7 gigawatts, underscoring the scale of demand.

The partnership could also open doors to additional contracts with other global tech companies, as major players closely monitor Meta’s supply chain.

Meanwhile, LS Electric has also secured a $70 million contract to supply power distribution equipment—including vacuum circuit breakers (VCBs)—to a large-scale data center project for a U.S. tech firm. The company expects further large-scale orders as demand for data center power infrastructure continues to grow.

 

 

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