LS Electric (010120.KS) said on the 19th that it has signed a $125.23 million contract, or about 168.9 billion won, to supply power distribution solutions for data centers in North America to a U.S. big tech company.
The deal was structured as a long-term agreement, or LTA, running for two years from next year through 2028. The contract value corresponds to volumes scheduled for delivery next year. The size of the 2028 portion will be determined through further talks with the client.
Global big tech firms have increasingly favored LTAs to secure power solutions, seen as a core requirement for building artificial intelligence data centers.
The contract covers 38 kV high-voltage switchgear. The equipment is core infrastructure that distributes incoming high-voltage power to individual facilities within a data center and protects those facilities when power faults occur. AI data centers, which must draw large volumes of electricity around the clock without interruption, demand high reliability and quality.
Following the high-voltage switchgear order, LS Electric is also in discussions to supply additional high-end power equipment tailored for data centers, including low-voltage switchgear, distribution transformers and gas-insulated ring main units, or RMUs.
"Our world-class data center solution technology, along with the trust we have built through customized data center projects, led to this long-term supply agreement," an LS Electric official said. "We will continue to expand supplies of high-value-added products for data centers to secure a stable revenue base and maximize profitability."
LS Electric has been building a self-contained local value chain spanning sales, engineering, production and service, centered on LS Electric Utah in Cedar City, Utah, and its Bastrop Campus in Texas, to respond to customer demand.