LS Electric is set to provide large-scale power equipment for the construction of artificial intelligence (AI) data center infrastructure for a North American big tech company. The expansion of the existing contract volume is expected to accelerate LS Electric's entry into the North American AI data center market.
On August 24, LS Electric announced that it has secured a project to supply power equipment for an AI data center worth approximately 230.9 billion won (about $165.7 million) from a North American big tech firm.
This contract is an expansion of a previous supply agreement made in June, which was increased at the request of the client. At that time, LS Electric signed a contract for a 38kV high-voltage distribution system worth 106.4 billion won (approximately $70.4 million). The contract amount has now more than doubled due to the increased supply volume.
The contract period runs from the initial agreement date of June 8, 2026, to January 30, 2027. The contract value exceeds 2.5% (approximately 12.41 billion won) of LS Electric's consolidated revenue at the end of last year, based on single sales and supply contract disclosure standards.
LS Electric explained that this additional order was based on the trust built with the client from previous data center infrastructure projects. The company has been recognized for its power equipment technology and supply capabilities, meeting the stringent quality standards and short delivery requirements demanded by global big tech firms.
In particular, LS Electric is strengthening its North American supply chain through local production bases, such as 'LS Electric Utah' and the 'Bastrop Campus' in Texas. The strategy is to respond quickly to the demand for power infrastructure resulting from increased investment in AI data centers through a local production system.
Looking ahead, LS Electric plans to expand its business into next-generation data center power infrastructure markets, including direct current (DC) distribution, beyond its existing alternating current (AC) power equipment. As the power consumption of AI data centers surges, the importance of stable and efficient power supply and distribution technology is growing, and the company aims to secure a leading position in this market.
A representative from LS Electric stated, "We are successfully executing projects for global big tech clients, leading to additional orders. Based on our proven technology and stable supply chain, we will solidify our position as a key partner for global big tech and expand our dominance in the AI data center power market."
* This article has been translated by AI.
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