LS Electric is accelerating its entry into the North American data center market by securing additional contracts for power infrastructure projects at artificial intelligence (AI) data centers.
On June 17, LS Electric announced that it has signed a contract to supply a 38kV high-voltage power distribution system valued at 106.4 billion won (approximately $70.4 million) for AI data center construction projects in North America. The supply is scheduled to take place from August to November.
This project involves additional orders from existing big tech clients. LS Electric is strengthening its position as a partner in building power infrastructure for global big tech companies by continuously securing contracts for core power equipment in data centers.
Notably, there has been a surge in contracts within the North American data center market this year. The total value of contracts secured for big tech data centers in North America has approached 1.2 trillion won, surpassing last year's annual contract volume of 800 billion won in just six months. This growth is attributed to increased investments in AI data centers.
The company's technological capabilities and delivery competitiveness are cited as key factors behind the recent contract wins. AI data centers require a stable supply of large-scale power, making the reliability of high-voltage distribution systems and adherence to delivery schedules critical competitive advantages. LS Electric has secured supply chain stability and responsiveness by utilizing local production bases, including its facility in Utah and the Bastrop Campus in Texas.
Additionally, LS Electric's experience in constructing domestic data centers has provided a strong reference for power equipment. The company has gained the trust of global clients based on its proven technology in core equipment areas such as ultra-high voltage switchgear, power devices, and automation solutions.
Market analysts expect LS Electric to benefit from the increasing power demand for data centers driven by the expansion of AI services. As U.S. big tech companies expand their AI data centers, which require tens to hundreds of megawatts (MW) of power, investments in distribution equipment and power infrastructure are also expected to rise.
An LS Electric representative stated, "We are recognized for our technology and supply capabilities as we secure additional projects based on the trust built with big tech clients. We aim to further expand our presence in the global data center power infrastructure market and strive to achieve our highest-ever performance this year."
* This article has been translated by AI.
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