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Panoramic view of LS Eco Energy's Vietnam manufacturing subsidiary (LSCV). / LS Eco Energy

LS Eco Energy is doubling its busduct production capacity in Vietnam to keep pace with mounting power infrastructure demand from AI data centers (AIDCs). Following a more than threefold year-on-year surge in related sales in the first half of this year, the company plans to invest an additional 8 billion won to expand its product lineup into high-value offerings engineered for heavy-duty power transmission.

According to LS Eco Energy on the 7th, its Ho Chi Minh manufacturing subsidiary LSCV will invest approximately 8 billion won to build new production facilities for epoxy-insulated busducts. Commercial production is slated to begin in the second half of 2027, and adding the epoxy type alongside its existing film type will double the plant's overall busduct production capacity.

Busducts are power distribution systems designed to deliver large volumes of electricity efficiently. The newly introduced epoxy type offers high insulation and durability, making it well-suited for high-capacity power feeds. As power consumption in AI data centers climbs, LS Eco Energy is broadening its customer base beyond traditional industrial plants and high-rise commercial buildings to include data centers.

Indeed, since establishing busduct manufacturing facilities in 2018, LSCV has expanded its supply footprint to hyperscale data centers operated by global Big Tech firms in Indonesia and Malaysia. Buoyed by these inroads, its busduct sales in the first half of this year jumped more than three times compared to the same period last year.

Southeast Asia continues to see a flurry of data center investments from global technology giants. Microsoft and Google have announced investments of 2.2 billion dollars and 2.0 billion dollars in Malaysia, respectively, moving aggressively to build out AI and cloud infrastructure. LS Eco Energy aims to ramp up local manufacturing capacity to proactively capture rising demand for data center power infrastructure across Asia.

Parent firm LS Cable & System is also broadening its global busduct footprint. In the U.S., it leverages LSCUS, a subsidiary of Gaon Cable, as its North American operational hub, while constructing a manufacturing subsidiary in Mexico. By expanding capacity at both its Gumi plant in North Gyeongsang Province and LSCV in Vietnam, the group is assembling a comprehensive supply chain for AIDC busducts spanning the Americas and Asia.

Lee Sang-ho, CEO of LS Eco Energy, stated, "Through this investment, we will simultaneously bolster product competitiveness and manufacturing capacity, accelerating our push into Asia's AI power infrastructure market."

                                                                                                            Lee Seo-yeon