LS Electric wins $64 million US data center deal

May 20, 2026, 08:45 am

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Workers inspect UL-certified power distribution equipment at LS Electric’s Cheongju plant. /LS Electric

LS Electric has secured another major contract in the U.S. data center power infrastructure market, accelerating its expansion in North America amid surging electricity demand driven by artificial intelligence (AI) data centers.

On May 20, LS Electric announced that it signed a contract to supply high-voltage switchgear for a microgrid system powering a U.S.-based data center. The contract is valued at approximately $64 million, or about 96 billion won.

Under the agreement, LS Electric will provide 38kV-class high-voltage switchgear solutions for data centers between December this year and August next year.

Microgrids are small-scale power networks capable of operating independently or in conjunction with external power grids. Demand for such systems has been rising rapidly in North America as AI data centers and cloud infrastructure expansion sharply increase electricity consumption. Many operators are seeking self-sufficient systems combining power generation, storage and consumption.

The data center industry is also increasingly adopting direct current (DC)-based power networks to improve energy efficiency. Since data centers operate hundreds of thousands of servers around the clock, minimizing power loss and ensuring uninterrupted operations have become critical competitive advantages.

LS Electric is strengthening its presence in the North American market by offering localized power solutions tailored for data center infrastructure upgrades. The company has recently secured a series of supply contracts for power distribution equipment with global big tech companies operating data centers in the region.

The company is also seeking to expand beyond its traditional high-end power equipment business into a broader smart energy portfolio that combines renewable energy and gas-fired power generation.

An LS Electric official said, “In AI data center power supply, high-efficiency power grids and operational stability capable of handling massive electricity demand are key,” adding, “Based on the technological competitiveness proven through consecutive contract wins, we will further strengthen our position in the North American microgrid market.”

#LS Electric #microgrid #AI data center #power infrastructure #North America