LS ELECTRIC Wins USD 170 Million Contract for North American Power Infrastructure Business

Industry Estimates Point to Major U.S. Big Tech as Likely Client

LS ELECTRIC announced on April 13 that it has signed a sales and supply contract worth USD 114.97 million (approximately KRW 170.3 billion) for power infrastructure in the North American hyperscale data center business.

The contract period runs from April 10 until December 31, 2026. Under this contract, LS ELECTRIC will supply switchgear and distribution transformers to hyperscale data centers being built by major North American big tech companies.

The client for this order remains undisclosed in accordance with the contract provisions. However, industry sources estimate that the customer is likely to be among Microsoft (MS), Google, Meta, or Amazon Web Services (AWS), all of which are currently undertaking large-scale data center projects in North America.

LS ELECTRIC explained that this order once again demonstrates the company’s total power equipment supply capabilities for hyperscale data centers, from ultra-high voltage to distribution systems. A company representative stated, “Because data centers must reliably supply a massive amount of power 24 hours a day, the criteria for selecting power infrastructure suppliers are extremely strict, and the verification procedures are also highly demanding.”

Recently, due to the proliferation of artificial intelligence (AI), data centers’ power consumption has surged, leading to the construction of hyperscale facilities. The traditional power grid is being restructured into microgrid infrastructure, which includes independent power generation facilities, rather than simply connecting to existing power systems. Data center power usage has now entered a phase of structural and rapid growth.

In 2024, global data center power consumption is estimated at about 415 TWh, meaning the industry already uses electricity at the scale of a nation. By 2030, this is expected to more than double to around 945 TWh. In particular, the North American data center power infrastructure market is projected to grow at a compound annual growth rate of 6.7%, from USD 15.8 billion (about KRW 2.35 trillion) in 2025 to USD 23.5 billion (about KRW 3.5 trillion) in 2031.

LS ELECTRIC plans to accelerate business expansion with its two production bases: MCM Engineering II in Utah and the Bastrop campus in Texas.

A representative from LS ELECTRIC stated, “With the expansion of hyperscale data centers and the resulting surge in demand for power infrastructure, our power equipment technology and supply competitiveness are being recognized in the global market. We will strategically expand our data center power business with North America as a key base to accelerate the acquisition of market leadership.”

This content was produced with the assistance of AI translation services.