LS Electric, a Korean producer of power solutions, announced Wednesday that it had secured a 64 billion won ($46 million) contract to supply distribution solutions for a US hyperscale AI data center project led by a major global tech company.
The company did not disclose details such as the client or size of the deal, citing contractual conditions.
The project involves supplying switchgear packages for gas power facilities within a microgrid system that will support stable electricity supply to the data center. Delivery is scheduled to begin in February next year and continue through July.
With surging demand for AI and cloud services in the US, many new data centers are turning to distributed-energy-based microgrids, which generate and manage electricity on site, rather than relying solely on aging transmission networks.
LS Electric plans to leverage this project to accelerate its push into the North American market. The firm already holds UL certification, a key requirement for entering the US power distribution market, and has been expanding its presence through projects tied to Korean conglomerates’ local investments.
Last year, the firm posted 1.3 trillion won in North American sales, over 70 percent of which came from switchgear, breakers and other distribution systems.
“Although the end client is a big tech company, we cannot disclose its name under an NDA. Still, being selected proves the global market’s trust in our technology,” said an LS Electric official.
“With growing power shortages driven by AI data centers, microgrid-based infrastructure is drawing increasing attention. With similar projects planned across the US, this deal could serve as a strong growth momentum in the North American power distribution market.”
hyelimchung@heraldcorp.com
