LS Electric Wins U.S. Data Center Supply Deal
LS Electric said on Oct. 19 that it signed a contract to supply power distribution solutions for data centers in North America. The agreement was structured as a long-term agreement, or LTA, running for two years from 2027 to 2028. The order value of 170.0 billion won ($125.80 million) corresponds t
On October 19, LS Electric announced a contract to provide power distribution solutions for data centers in North America. The agreement, a long-term contract, spans from 2027 to 2028 and has an order value of 170.0 billion won, or approximately $125.80 million, for the supplies planned in 2027. The company has yet to finalize the 2028 business, which will be determined through further consultations.
The primary product to be supplied is 38kV-class high-voltage switchgear, a crucial component for stably distributing high-voltage electricity to data centers and safeguarding facilities during power system abnormalities. Given the constant power requirements of AI data centers, product reliability and quality were significant factors in the contract.
LS Electric aims to expand its offerings beyond high-voltage switchgear, with plans to discuss other customized high-end power equipment for data centers, such as low-voltage switchgear, distribution transformers, and ring main units (RMUs). The recent success reflects the effectiveness of the company's strategy in enhancing its local response system in the United States.
LS Electric has established operations in Utah and Texas, creating a locally completed value chain that manages the entire process on-site, from sales and design to production, commissioning, and service. This local presence enables the company to respond swiftly to customer demands. An LS Electric official attributed the long-term contract to trust built through the company's world-class technological capabilities and project execution experience.
Looking ahead, LS Electric plans to strengthen a stable revenue base and improve profitability by increasing the supply of high-value-added products for data centers in the future.
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