LS Electric wins $64 mil. microgrid switchgear contract for US data center

LS Electric workers check on a machine at the company's factory in Cheongju, North Chungcheong Province. Courtesy of LS Electric

LS Electric, which specializes in electrical power equipment, industrial automation systems and smart energy solutions said Tuesday that it had signed a contract worth 96 billion won ($64 million) to supply high-voltage switchgear for a microgrid system at a data center in the United States, its latest win in the fast-growing North American power infrastructure market.

The contract covers the supply of 38kV-class high-voltage distribution panels designed for uninterrupted 24-hour power operation. Delivery is scheduled to start December this year and conclude in August 2027. The company did not identify the customer.

The award comes as a surge in AI adoption and cloud infrastructure expansion has driven exponential growth in data center power consumption across North America. Demand for on-site microgrids — self-contained systems that generate, store and distribute electricity independently of the main grid — has accelerated, as data center operators face three to five year waits for utility grid connections in the United States.

LS Electric said it is part of a broader shift in its business model, moving beyond equipment supply toward becoming an integrated smart energy provider and incorporating renewable energy and gas generation.

The Korean company also highlighted the efficiency gains from direct current distribution systems, which can reduce power conversion losses by 10 to 15 percent within microgrid environments.

An LS Electric official said the key to powering AI data centers is a high-efficiency grid capable of handling massive power loads with uninterrupted stability, adding that the company plans to build a foothold in the rapidly growing local microgrid market on the strength of its proven technology.

North America accounts for more than 40 percent of global data center microgrid demand, according to LS Electric.

This article was published with the assistance of generative AI and edited by The Korea Times.