LS ELECTRIC, a South Korean power and automation equipment manufacturer, has signed a $123 million contract to supply ultra-high-voltage transformers to renewable energy projects in the western United States. Production will take place at the company's facilities in South Korea, with deliveries expected to begin in 2027.

The contract reflects growing demand for grid modernization in the U.S., where aging infrastructure is under increasing pressure from the expansion of AI technologies and hyperscale data centers. The International Energy Agency (IEA) projects that global electricity consumption from data centers will more than double by 2030, surpassing current levels in Japan.

Grid connection delays and infrastructure capacity are becoming key constraints in several U.S. markets, prompting utilities and private operators to accelerate investments in high-voltage electrical systems.

Other Korean manufacturers are also reporting increased activity in North America. Hyosung Heavy Industries recently secured a $191 million order for ultra-high-voltage circuit breakers from a U.S. utility, the company's largest single contract for that product.

To meet rising demand, several Korean firms are expanding their U.S. operations. HD Hyundai Electric is investing $135 million to expand its plant in Alabama. Hyosung is increasing capacity in Memphis, Tennessee, and LS ELECTRIC has completed construction of a new production campus in Bastrop, Texas.

The combined backlog for LS ELECTRIC, Hyosung, and HD Hyundai Electric now exceeds $15.9 billion, indicating sustained demand for advanced power equipment in the North American market.

Source: chosun.com