Global AI Company Power Distribution Solution, Handled by LS Electric... 64.1 Billion Won Scale

[Financial News] LS Electric recently announced on the 3rd that it has signed a contract to supply power distribution solutions worth 46 million dollars (about 64.1 billion won) for a hyperscale AI data center power infrastructure project in the United States. This project is for the power supply of AI data centers of major global big tech companies, and LS Electric will handle the power distribution solution for gas power generation facilities within the microgrid. The project period is from February to July next year. The company name was not disclosed due to a confidentiality agreement.
LS Electric is accelerating its efforts to penetrate the U.S. market, where interest in power distribution solutions is increasing due to the expansion of data centers. Previously, it was the only domestic heavy industry company to secure the essential 'UL certification' for entering the U.S. power distribution market over 10 years ago, and it expanded its business through power infrastructure construction projects accompanying the local facility investments of major domestic companies such as LG, Samsung, SK, and Hyundai Motor. Recently, it has been expanding its business to local distribution networks while focusing on increasing its market share in distributed energy, data centers, and manufacturing plants.
LS Electric expects to be able to fully launch related businesses with this AI data center project order. An LS Electric representative said, "Currently, in the U.S., the demand for AI and cloud computing is surging, causing problems with stable power supply to data centers," adding, "Newly constructed data centers tend to prefer microgrids based on distributed energy that generate electricity independently." LS Electric is a leading player in the domestic microgrid sector.
LS Electric anticipates that with the expansion of data center sizes, the demand for large-scale power infrastructure, switchboards, and other power systems will also increase explosively. The global data center power demand is estimated to grow at an average annual rate of 11% from 2023 to 2028.
LS Electric plans to continue its dominance in the power distribution market, which will be fully developed in the future, through additional investments in major global hubs. An LS Electric representative said, "Being selected as a supplier of power infrastructure for large-scale AI data centers of a company representing the global IT industry proves our technological reliability in the global market," adding, "There is a high possibility of follow-up orders from the same customer within this year."

kjh0109@fnnews.com Jun-ho Kwon Reporter