LS Electric said on the 13th that it signed a supply contract worth $114.97 million (about 170.3 billion won) for power infrastructure in the North American hyperscale data center business.
As part of the "North America data center power equipment supply project," LS Electric will supply switchgear and distribution transformers to a hyperscale data center being built by a major North American big tech corporations.
Because data centers must supply large amounts of power reliably around the clock, the criteria for selecting power infrastructure suppliers are known to be strict, and the verification procedures are also demanding.
Recently, data centers have seen a surge in power consumption with the spread of artificial intelligence (AI), and are being built to a "hyperscale" level. In turn, they are being reorganized around microgrid (small-scale power grid) infrastructure equipped with their own generation facilities, beyond conventional grid interconnections.
The North American data center power infrastructure market was forecast to grow at an average annual rate of 6.7%, from about $15.8 billion (about 23.5 trillion won) last year to about $23.5 billion (about 35 trillion won) in 2031.
LS Electric will accelerate business expansion with two major production bases: MCM Engineering II in Utah and the Bastrop campus in Texas.
An LS Electric official said, "The company's competitiveness is being recognized across the board, including the quality of power solution products, supply stability, on-time delivery responsiveness, and local, tailored project execution capabilities," adding, "We will strategically expand the data center power business with North America as a base to speed up securing market leadership."