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[Alpha Biz= Kim Jisun] LS Electric has secured a KRW 170 billion (approx. USD 130 million) contract to supply switchgear systems to U.S. Company, marking the first case of a Korean company providing power distribution equipment for U.S. Company AI data centers.
According to industry sources on April 13, LS Electric recently finalized last-stage negotiations with U.S. Companies regarding supply volume and delivery schedules, confirming the contract. The agreement covers the supply of comprehensive power distribution systems—including medium-voltage (MV) circuit breakers—to AI data centers currently under construction in North America, with deliveries scheduled from March through November this year.
The total contract value is estimated at around KRW 170 billion. LS Electric plans to initially manufacture the equipment at its Cheongju plant in North Chungcheong Province, before shifting part of the production in the second half of the year to its U.S. subsidiaries, including facilities in Utah and Texas.
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Since 2021, the North American “power equipment supercycle” has been largely driven by demand for ultra-high-voltage transformers, fueled by surging electricity consumption from AI infrastructure and the need to replace aging transmission networks. South Korean manufacturers—including HD Hyundai Electric, Hyosung Heavy Industries, and LS Electric—have capitalized on this trend by launching higher-capacity products and securing multi-year order backlogs.
Industry observers view LS Electric’s latest deal with a major U.S. tech company as a sign that the power equipment boom is expanding beyond ultra-high-voltage transformers into medium- and low-voltage switchgear markets. In data center infrastructure, electricity generated at power plants is first stepped up to at least 154kV via ultra-high-voltage transformers for transmission, then reduced to below 66kV through switchgear systems for distribution to individual servers.
This shift reflects growing competition among North American hyperscalers to secure reliable power distribution systems, following substantial investments already made in transmission infrastructure.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
