LS ELECTRIC said on the 23rd that it expects this year's global data center business orders to top 1 trillion won, a record high. Of that, orders for data center projects in North America surpassed 800 billion won and led the earnings increase, while orders for domestic data center projects reached 200 billion won.
LS ELECTRIC won a series of data center-related projects this year, starting with a 160 billion won power equipment supply contract early this year with a North American artificial intelligence (AI) big tech corporations. It also secured orders worth nearly 300 billion won in the second half.
LS ELECTRIC said its focus on strengthening brand awareness through a localization strategy and expanding business by leveraging partnerships with power equipment distributors and infrastructure corporations led to results. It also noted that a strategy to expand its business portfolio from the existing focus on supplying data center power distribution solutions to include ultra-high-voltage transformers and microgrid solutions proved effective.
The domestic data center solutions business is also steadily showing strong momentum. LS ELECTRIC holds a 70% share of the domestic data center power solutions market. Domestic data center investment is expected to expand by more than 13% annually, from about 6 trillion won last year to 10 trillion won in 2028.
The global data center market is expected to grow from about $430 billion (about 638 trillion won) this year to $1.14 trillion (about 1,691 trillion won) in 2035. North America accounts for 37% of the global data center market, making it the largest market in the world.
A LS ELECTRIC official said, "As data center investment by big tech corporations is expected to expand significantly, centered on North America and ASEAN as well as domestically, we will push to grow sales by securing solid business opportunities."