LS Electric said on the 6th that its subsidiary LS Power Solution recently signed a contract worth about $70.26 million (about 106.6 billion won) to supply extra-high-voltage transformers to a U.S. energy infrastructure corporations. It follows the $46 million (about 69.5 billion won) distribution solution supply contract signed in September last year for a data center microgrid project.
Under the contract, LS Power Solution will supply 345-kilovolt (kV) extra-high-voltage transformers for the microgrid that will power a big tech data center being built in the central United States. The supply period runs from the fourth quarter of 2027 to the first half of 2028. Under a nondisclosure agreement (NDA), the specific corporate name was not disclosed.
Recently in North America, as power demand from data centers has surged, there is growing momentum to advance projects by building separate microgrids that are not connected to the existing grid to ensure stable and efficient power supply. Global big tech corporations have also signed pledges to procure power directly from power plants they build themselves, making microgrids a key means for data centers to become self-sufficient in electricity.
LS Power Solution was acquired by LS Electric in 2024 and changed its corporate name from KOC Electric to LS Power Solution last year. It is evaluated as one of the top five domestic corporations that, uniquely among domestic small and mid-sized companies, possesses 154 kV technology and facilities and supplies extra-high-voltage transformers to Korea Electric Power Corporation. It is also expanding its product lineup to 345 kV and widening its customer base overseas.
An LS Electric official said, "Following last year's supply of distribution solutions to a data center microgrid, being selected as a supplier of extra-high-voltage transformers proves the technological reliability that spans transmission and distribution."
An LS Power Solution official said, "Through this order, we will firmly strengthen our brand competitiveness in the rapidly growing data center microgrid market."