LS Electric signs 170 billion won deal with US tech giant for power distribution solutions
LS Electric has signed a long-term supply agreement (LTA) for data center power distribution solutions with a U.S. Big Tech company. As the expansion of AI (artificial intelligence) data centers drives an increase in the procurement of power equipment through long-term supply agreements, the company is moving from high-voltage switchgear to discussions on supplying additional high-end products.
On the 19th, LS Electric announced that it has signed a North American data center power distribution solution supply contract worth 168.9 billion won (125.23 million dollars) with a U.S. Big Tech company. The contract period is two years, from 2027 to 2028. This order amount corresponds to the volume scheduled for supply in 2027, while the scale of supply for 2028 will be determined through additional negotiations with the company.
The product being supplied is a 38kV (kilovolt) class high-voltage switchgear. It is equipment that distributes high-voltage power supplied to data centers to each facility and protects the facilities in the event of a power anomaly. It is considered a core power infrastructure for AI data centers, which require large-scale power usage around the clock.
Recently, global Big Tech companies have been preferring long-term supply agreements to secure power solutions needed for AI data center construction in a stable manner. As demand for data center construction is expected to increase, power equipment supply contracts are also projected to shift toward long-term agreements.
Following the high-voltage switchgear, it is also discussing additional supplies of power equipment for data centers, including low-voltage switchgear, distribution transformers, and RMUs (high-voltage gas circuit breakers).
The company is also accelerating efforts to strengthen its North American production and supply system. Centered on "LS Electric Utah" in Cedar City, Utah, and the "Bastrop Campus" in Texas, LS Electric is building a local supply infrastructure. With a structure that handles everything from sales to design, production, and service locally, it supplies products tailored to each customer's requirements.
A company official said, "Our world-class data center solution technology and the trust built through executing customized data center projects have led to this long-term supply agreement." The official added, "Going forward, we will expand the supply of high-value-added products for data centers to secure a stable revenue base and maximize profitability."
"This article was translated using AI and may differ slightly from the original."
Source: Money Today
