LS Electric, KT Cloud sign MOU to build AI data center infrastructure
Summary
LS Electric said it signed an MOU with KT Cloud on Wednesday in Seoul to jointly supply power infrastructure and develop technology for AI data centers. The companies will work from the early design stage on power solutions for modular data centers. LS Electric plans to supply core equipment such as ultra-high-voltage transformers, gas-insulated switchgear and power distribution panels for KT Cloud’s new AI data center projects.
Key Facts
- The agreement was signed at LS Yongsan Tower in Seoul, with LS Electric CEO Chae Dae-seok and KT Cloud CEO Kim Bong-kyun among the officials present.
- The partnership covers modular data centers, which are prefabricated facilities assembled on-site after standardized server rooms, power systems and cooling modules are built at a factory.
- LS Electric plans to expand its supply scope later to include uninterruptible power supply units and cooling systems.
- The deal follows several contracts LS Electric has secured with major North American technology firms building hyperscale AI data centers.
LS Electric CEO Chae Dae-seok, left, and KT Cloud CEO Kim Bong-kyun pose after signing a memorandum of understanding on a strategic partnership for artificial intelligence data center infrastructure at LS Yongsan Tower in Seoul, Wednesday. Courtesy of LS Electric
LS Electric said it signed a memorandum of understanding with KT Cloud on Wednesday to jointly supply power infrastructure and develop technology for artificial intelligence (AI) data centers, as the two firms move to capture a share of Korea's fast-growing AI infrastructure market.
The agreement was signed at LS Yongsan Tower in Seoul, with LS Electric CEO Chae Dae-seok and KT Cloud's chief executive Kim Bong-kyun among senior officials from both companies in attendance.
Under the partnership, the companies will collaborate from the early design stage on power solutions for modular data centers — prefabricated facilities in which standardized server rooms, power systems and cooling modules are built at a factory, then assembled on-site. The approach can cut construction time significantly compared with conventional reinforced-concrete buildings and allows for more flexible expansion, a growing priority as data center operators race to add capacity quickly.
LS Electric will supply core power equipment — including ultra-high-voltage transformers, gas-insulated switchgear and power distribution panels — for KT Cloud's new AI data center projects, with plans to later expand into uninterruptible power supply units and cooling systems.
The deal follows a string of contracts LS Electric has secured with major North American technology firms building hyperscale AI data centers, supplying high-voltage transformers and distribution systems.
"As explosive growth in generative AI drives soaring power demand, stable and efficient high-power infrastructure technology has become the key competitive factor determining a data center's success," an LS Electric official said.
"Through this partnership with KT Cloud, which holds Korea's top-tier cloud and data center capabilities, we will strengthen our readiness for next-generation AI data center technology and solidify our market position."
This article was published with the assistance of generative AI and edited by The Korea Times.
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