LS Electric Wins U.S. Data Center Supply Deal

LS Electric’s power distribution solution for data centers (provided by LS Electric) LS Electric said on Oct. 19 that it signed a contract to supply power distribution solutions for data centers in North America. The agreement was structured as a long-term agreement, or LTA, running for two years from 2027 to 2028. The order value of 170.0 billion won ($125.80 million) corresponds to the volume scheduled for supply in 2027, while the scale of the 2028 business is to be finalized through additional consultations later. The main product to be supplied is 38kV-class high-voltage switchgear. The equipment serves as core infrastructure that stably distributes high-voltage electricity entering data centers and protects facilities when abnormalities occur in the power system. Given the nature of artificial intelligence, or AI, data centers, which must continuously receive large-scale electricity around the clock, product reliability and quality acted as key indicators in the contract. LS Electric is seeking to expand beyond this high-voltage switchgear supply. It is understood to be holding additional discussions on supplying other customized high-end power equipment for data centers, including low-voltage switchgear, distribution transformers, and ring main units, or RMUs. The latest result is seen as reflecting the effectiveness of the company’s strategy of strengthening its local response system in the United States. LS Electric has established bases at LS Electric Utah in Cedar City, Utah, and the Bastrop Campus in Texas. Through these operations, it has built a locally completed value chain that handles the full process on site, from sales and design to production, commissioning, and service, enabling it to respond quickly to customer demands. An LS Electric official explained that trust built through world-class technological capabilities and project execution experience led to the long-term contract. The company said it plans to further strengthen a stable revenue base and improve profitability by increasing supplies of high-value-added products for data centers in the future.