Shares of LS Eco Energy soared by 16.7% in early trading after the company announced its participation in a power supply project for a large artificial intelligence (AI) data center in Vietnam.
As of 9:27 a.m. on May 14, LS Eco Energy's stock was trading at 109,000 won, up 15,600 won from the previous trading day. The stock reached an intraday high of 109,800 won, setting a new record.
The company revealed that its subsidiary, LS-VINA, based in Haiphong, will supply power cables for the construction of the AI data center, which is being developed by Viettel Group, Vietnam's largest telecommunications company.
This project is one of the largest AI infrastructure initiatives in northern Vietnam, involving the establishment of a 60-megawatt (MW) data center in a new city near Hanoi. This capacity is sufficient to power approximately 40,000 to 50,000 households simultaneously. It is seen as a significant infrastructure project to meet the growing demand for generative AI and cloud services.
The products supplied by LS Eco Energy will be used in the power network connecting the data center and substations. As the competition for generative AI expands beyond servers and semiconductors to include power and communication networks, expectations are rising for companies involved in electrical infrastructure.
Recently, LS Eco Energy also supplied bus ducts and transmission cables for hyper-scale AI data centers being built by major global tech firms in Indonesia and Malaysia. Market analysts suggest that the ongoing trend of increased investment in Southeast Asian data centers is reflected in the company's growing order expectations.
Lee Sang-ho, CEO of LS Eco Energy, stated, "The AI data center market is evolving from a server competition to a competition for power and communication infrastructure. We will strengthen our efforts to penetrate the global AI infrastructure market, focusing on high-voltage cables and power and optical communication solutions for data centers."
* This article has been translated by AI.
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