LS Electric, KT Cloud sign MOU to build AI data center infrastructure

LS Electric and KT Cloud have entered into a memorandum of understanding to jointly develop power infrastructure and technology for artificial intelligence data centers in Korea, aiming to capture a larger share of the rapidly expanding AI infrastructure market. The agreement was officially signed at the LS Yongsan Tower in Seoul, with senior officials from both companies, including LS Electric CEO Chae Dae-seok and KT Cloud CEO Kim Bong-kyun, in attendance.

The partnership will focus on collaborating from the initial design stage to create power solutions specifically tailored for modular data centers - prefabricated facilities that feature standardized server rooms, power systems, and cooling modules that are manufactured in a factory and then assembled on-site. This modular approach offers significant advantages, as it can drastically reduce construction time compared to traditional reinforced-concrete buildings and allows for more flexible expansion, a crucial factor as data center operators strive to quickly increase their capacity.

LS Electric will provide the core power equipment needed for this initiative, including ultra-high-voltage transformers, gas-insulated switchgear, and power distribution units.