LS Electric will supply approximately 486 billion won ($34.25 million) worth of power distribution solutions to a hyperscale data center in the United States. As demand for power infrastructure grows with the expansion of AI data centers, the company is strengthening its focus on the large data center market by utilizing its local production system in North America.
On August 18, LS Electric announced that it has signed a contract with global power company Bloom Energy for the supply of power distribution solutions worth $34.25 million. LS Electric will provide key distribution systems, including low-voltage switchgear, for the hyperscale data center being developed by Bloom Energy in Wyoming.
The supply is scheduled to take place between January and June of next year. This contract is significant as it expands existing business with current customers. LS Electric emphasized its competitiveness in distribution technology and quality, as well as its ability to respond to local demand in terms of delivery times.
LS Electric is also expanding its local production base to target the North American data center market. The company operates major production hubs in Utah and Bastrop, Texas, establishing a system for sales, design, production, and services locally.
Additionally, LS Electric is investing in next-generation power technologies. The company is developing a 'DC Factory' at its facility in Cheonan, applying direct current distribution and enhancing its DC distribution solutions.
The expansion of LS Electric's North American data center business is reflected in its financial performance. In the second quarter of this year, the company reported record quarterly revenues of 1.577 trillion won and operating profits of 178.5 billion won. North American sales reached approximately 400 billion won, marking a quarterly high. Cumulative orders have exceeded 7 trillion won.
As the demand for power in AI data centers surges, the need for stable power distribution infrastructure within the data centers is also increasing, suggesting that the role of distribution solutions will grow in LS Electric's North American operations.
LS Electric plans to secure additional orders in the North American data center power infrastructure market by expanding its collaboration with Bloom Energy. A company official stated, "We will strengthen our strategic partnership with Bloom Energy and actively utilize our local infrastructure to expand our market share in the North American data center sector."
* This article has been translated by AI.
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