LS Electric Signs Major Transformer Supply Contract for North American Data Center Expansion
LS Electric has signed a supply contract worth approximately $115million (170 billion won) to provide power infrastructure equipment for hyperscale data centers in North America.
The company will supply switchgear and distribution transformers as part of a project supporting data centers being developed by major North American technology firms. These facilities are designed to meet the increasing power demands associated with artificial intelligence (AI) workloads and continuous high-capacity computing.
Data centers require highly reliable and uninterrupted electricity supply, making supplier qualification processes strict and technically demanding. The market is increasingly shifting toward microgrid-based systems that integrate on-site generation alongside traditional grid connections to improve resilience and efficiency.
LS Electric stated that it will support project execution through its production bases in Utah and Texas, including MCM Engineering II and the Bastrop campus, which are expected to play a role in expanding its North American operations.
The North American data center power infrastructure market is projected to grow from about $15.8 billion last year to approximately $23.5 billion in 2031, according to industry estimates cited in the report.
A company 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."
Source: biz.chosun.com