LS Electric wins $91.5 mil. power system contract for US data center

LS Electric's power distribution panels for U.S. export / Courtesy of LS Electric

LS Electric has clinched a 132.9 billion won ($91.5 million) deal to supply power systems for a hyperscale artificial intelligence (AI) data center in the United States, the company said Monday.

The deal involves providing power distribution switchboards and transformers for a data center operated by a tech company in Tennessee. LS Electric will supply the equipment for the data center’s electrical rooms and mechanical facilities, which are designated for AI and machine learning servers, by April next year.

The company did not disclose the client, but noted that the two sides had already signed a 310 billion won contract to supply power equipment between late last year and early this year.

LS Electric said the latest deal reflects its proven execution capabilities in the ongoing project, adding that it expects the partnership to continue going forward.

“The latest deal is significant as it demonstrates LS Electric’s ability to supply comprehensive power equipment for a hyperscale data center in the U.S., which lies at the center of global AI investment,” an LS Electric official said.

“We are also receiving an increasing number of inquiries about long-term supply contracts from several clients in North America, where power supply planning is being disrupted. We expect rapid growth in the region’s power distribution market.”

In the U.S., an increasing number of data center operators and hyperscalers are struggling to secure sufficient power, as the country’s aging grid fails to keep up with the surging electricity demand driven by rapid growth in AI and cloud computing. Against this backdrop, newly built data centers are turning to alternative solutions, including advanced grid systems and self-sufficient power distribution models such as microgrids.