LS Electric chief confident in winning mega AI data center deals

BAC NINH, Vietnam — LS Electric CEO and Chairman Koo Ja-kyun has expressed confidence in landing large-scale power solutions deals with major global tech companies, citing the firm’s strengths in fast product delivery and competitive pricing.

The Korean power and automation systems provider is experiencing strong earnings growth, with annual sales nearly doubling over the past few years. LS Electric reported sales of 2.4 trillion won ($1.74 billion) in 2020, which surged to more than 4.5 trillion won in 2023, driven by increased demand for its electric equipment in North America and Southeast Asia.

The company’s outlook remains strong, with major U.S. tech firms accelerating plans to build data centers in Asia to meet surging demand for artificial intelligence (AI) services.

On Monday (local time), Koo emphasized LS Electric’s competitive edge over global rivals and shared ambitions to expand into the fast-growing market for data center power infrastructure.

“We have core strengths in fast delivery to our clients,” Koo told reporters during his visit to the company’s manufacturing facility in Bac Ninh.

“LS Electric can deliver its power solutions nearly twice as fast as our major overseas competitors. Our products offer both high quality and strong price competitiveness, which makes us well-positioned for the AI era.”

In 2022, LS Electric completed a new production line in Bac Ninh, relocating its aging factory in Hanoi. The move was aimed at establishing Bac Ninh as the company's primary manufacturing hub in the Association of Southeast Asian Nations (ASEAN) region.

The factory focuses on manufacturing customized power distribution devices. Clients include power plant operators, mobile carriers and global IT firms — all of which require facilities for electricity distribution at their business sites, factories and data centers.

The devices are primarily used for transmitting and supplying electricity from power generators.

The company sees Vietnam and Indonesia as key growth drivers, given their rising geopolitical importance and potential to attract data center investments from global tech firms.

“LS Electric is considering building another production line at the Bac Ninh manufacturing facility, as demand for our power solutions is outpacing supply,” Koo said. “We expect to secure large orders in the coming years, fueled by the growing strategic significance of the ASEAN market.”

Koo visited the Vietnamese production line ahead of the Elecs Vietnam 2025 exhibition, which opens Wednesday for a three-day run in Ho Chi Minh City. He will deliver an opening speech for the upcoming fair.