GS Construction is collaborating with LS Electric to ensure a stable supply of power equipment and secure next-generation power technologies for its artificial intelligence (AI) data center projects.
On August 10, GS Construction announced that it signed a business agreement with LS Electric at the LS Yongsan Tower in Seoul to jointly respond to changes in the AI data center business environment.
The signing ceremony was attended by LS Electric Chairman Koo Ja-kyun, GS Construction CEO Heo Yoon-hong, and LS Electric CEO Chae Dae-seok, along with other officials from both companies.
Under the agreement, LS Electric will assist GS Construction in the timely supply of key power equipment necessary for its ongoing and planned AI data center projects. The two companies aim to establish a procurement and technical response system to reduce supply uncertainties that may arise during project execution.
AI data centers operate high-performance computing equipment, such as graphics processing units (GPUs), on a large scale, resulting in higher power consumption and power density per device compared to traditional cloud data centers. Therefore, securing substations, distribution facilities, and cooling systems for stable large-scale power supply is considered a critical business requirement.
The two companies will also jointly explore next-generation power solutions required during the transition from cloud data centers to AI data centers. They plan to hold technical exchange meetings on modular data centers and direct current (DC) power distribution solutions to discuss related technologies and applications.
They will also collaborate to meet the design and technical requirements presented by major clients, including global tech giants. The plan is to leverage GS Construction's experience in data center design and construction alongside LS Electric's power equipment and distribution technology.
A GS Construction representative stated, "AI data centers require a higher level of power stability and operational efficiency than existing data centers. We will strengthen our business capabilities by jointly responding to power equipment supply, next-generation power solutions, and the technical requirements of global clients."
Meanwhile, Jang Mun-jun, a researcher at KB Securities, noted, "As most large construction companies in South Korea emphasize data centers as a future growth area, GS Construction has an advantage in securing practical business opportunities in the short term, such as the Donghae AI data center."
* This article has been translated by AI.
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