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LS Electric signs $46 mil. deal for US data center project

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By Lee Min-hyung
  • Published KST
LS Electric's switchgears used for power distribution at AI data centers / Courtesy of LS Electric

LS Electric's switchgears used for power distribution at AI data centers / Courtesy of LS Electric

LS Electric has secured a $46 million contract to supply its power distribution solutions for a hyperscale artificial intelligence (AI) data center project in the United States, the Korean electric equipment maker said Wednesday.

The project was commissioned by an undisclosed global big tech firm. LS Electric will begin phased deliveries of its power distribution products for gas-powered generation facilities within a microgrid there. The company will deliver the solutions for six months starting February 2026.

The latest deal will expand LS Electric’s global footing rapidly at a time when demand for AI and cloud computing surges in the world’s largest economy. Reliable power supply to data centers has particularly emerged as a pressing issue in recent years, as aging transmission infrastructure and limited electricity availability have prompted a shift toward decentralized energy systems like microgrids.

LS Electric is recognized for its global competitive edge in direct current power distribution equipment. The company expressed hopes to leverage the latest deal as a major stepping stone to boost its expansion into the North American market by offering tailored power distribution solutions optimized for AI data centers.

Last year, the company reported approximately 1.3 trillion won in sales from North America, with more than 70 percent coming from power distribution systems such as switchgears.

With the rapid rise of data centers and AI servers, LS Electric expects demand for large-scale power infrastructure to soar not just in the U.S., but also in Asia, at least for the next few years.

“The end client is a major big tech firm, but we are unable to disclose its name due to the nondisclosure agreement,” an LS Electric official said. “Being selected as the power infrastructure supplier for such a huge AI data center project proves our technological credibility in the global market.”