LS Electric said on the 29th that it signed a contract worth about 319 billion won to supply distribution solutions to global power corporations Bloom Energy.
LS Electric is set to supply the entire suite of key distribution systems, including switchgear and transformers, for Bloom Energy's project to build power infrastructure for a hyperscale data center of a major big tech corporations being developed in New Mexico.
Bloom Energy counts Oracle, a cloud service provider (CSP), as a major customer.
Including this deal, LS Electric has been winning a series of large projects in the North American market, which observers said proves its technological prowess and project execution capabilities. Earlier this month, it won a project worth 170 billion won to build power solutions for a major big tech data center.
The orders are feeding through to results. On a consolidation basis, LS Electric posted first-quarter revenue of 1.3766 trillion won and operating profit of 126.6 billion won this year, marking its best first-quarter performance.
Because data centers must supply massive power stably 24 hours a day, high-efficiency, high-reliability distribution equipment manufacturing technology, fast delivery, and a stable maintenance system are cited as core competitive strengths.
LS Electric is accelerating efforts to strengthen its local production base. Centered on its hubs in Utah and Texas, it plans to reinforce the supply chain and increase the share of local production to boost delivery competitiveness.
LS Electric is accelerating the expansion of its "direct current distribution" business targeting the next-generation data center market. In the data center industry, interest is growing in DC distribution, which can improve energy efficiency by reducing power conversion stages. LS Electric's strategy is to preempt the market based on its world-class low-voltage direct current (LVDC) solutions and its DC factory operation know-how at the Cheonan business site.
An LS Electric official said, "The U.S. data center market is rapidly expanding investment in distribution infrastructure as artificial intelligence (AI) spreads and power demand rises," adding, "We will accelerate growth and expand large orders in North America by leveraging core technological capabilities such as expanding the local supply chain, strengthening partnerships, and next-generation direct current (DC) solutions."