LS Eco Energy targets AI data center power market, doubles busduct production capacity

[Financial News] LS Eco Energy is moving to expand its power infrastructure business, doubling production capacity for large-capacity busducts used in AI data centers. The strategy is to get ahead of rising demand for power infrastructure as global tech giants step up data center investment in Southeast Asia.
LS Eco Energy said on the 7th that LSCV, its production subsidiary in Ho Chi Minh City, Vietnam, will invest about 8 billion won to build new production facilities for epoxy-insulated busducts.
Busducts are power distribution systems that supply large amounts of electricity and are considered essential power infrastructure for AI data centers, which consume large amounts of power. The epoxy type for which production facilities are being built is a high-value-added product suited to supplying large amounts of power where high insulation performance and durability are required. 
LSCV plans to begin mass production of epoxy-type busducts in the second half of next year. Adding the epoxy type to its existing film type will double total busduct production capacity. The company plans to broaden its product range to meet AI data center customers’ diverse specifications and strengthen its competitiveness in winning orders, particularly in Asia. 
As global tech giants have recently expanded their data center investments in Southeast Asia, demand for related power infrastructure has also been rising rapidly. Microsoft and Google have announced investments in Malaysia worth $2.2 billion and $2 billion, respectively, and are working to expand their AI and cloud infrastructure. 
LSCV is also expanding its busduct customer base, focusing on data centers. Since installing busduct production facilities in 2018, it has expanded its business around plants and high-rise buildings. More recently, it has broadened its supply reach to include hyperscale data centers run by global tech giants in Indonesia and Malaysia. As a result, busduct sales in the first half of this year increased at least threefold from the same period a year earlier. 
LS Cable & System is also moving to expand its busduct business for AI data centers. It is using LSCUS, Gaon Cable’s U.S. subsidiary, as its North American business hub while building a production subsidiary in Mexico. It is also expanding production capacity at its Gumi plant in North Gyeongsang Province and at Vietnam’s LSCV, as it works to build a supply chain spanning the Americas and Asia. 
LS Eco Energy CEO Lee Sang-ho said, "Through this investment, we will strengthen both product competitiveness and production capacity and accelerate our push into Asia’s AI power infrastructure market." 

[email protected] Im Su-bin Reporter