LS Eco Energy announced that it will provide power cables for a major AI data center project, spearheaded by Viettel Group, the leading telecommunications company in Vietnam, amid growing competition to establish AI infrastructure across Southeast Asia.
The Korean corporation announced that its manufacturing affiliate in Vietnam, LS-VINA, will supply cables for a hyperscale AI data center currently under construction near Hanoi.
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This facility, with an intended capacity of 60 megawatts, is recognized as one of the most significant AI infrastructure undertakings in northern Vietnam and is tailored to accommodate the growing demand for generative AI and cloud services.
The magnitude of this project is comparable to the electrical usage of approximately 40,000 to 50,000 households, highlighting the increasing pressure that AI computing exerts on local power infrastructures.
LS Eco Energy announced that the cables are destined for integration within the power network linking the data center and substations. AI data centers, which depend on high-density GPU servers, necessitate stable electricity supply systems and a highly reliable power distribution infrastructure due to their significant energy consumption and heat production.
The corporation has been broadening its footprint in the Southeast Asian AI data center market, providing busduct systems and transmission cables to hyperscale facilities currently being developed in Indonesia and Malaysia by international technology firms.
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Representatives from the industry have indicated that the demand for investment in data centers is progressively moving towards nations like Vietnam, Malaysia, and Thailand, largely due to Singapore experiencing limitations in both land availability and electricity supply.
Furthermore, Vietnam is actively enhancing its initiatives to establish itself as a regional hub for AI data centers, in response to the growing electricity demands spurred by the expansion of generative AI services.
Lee Sang-ho, the Chief Executive Officer of LS Eco Energy, stated that the competitive landscape within the AI sector is transitioning beyond just servers and chips, expanding its focus to include energy and communication infrastructure.
“We will strengthen our push into the global AI infrastructure market centered on extra-high-voltage cables and power and optical communication solutions for data centers,” Lee says.
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LS Eco Energy is actively exploring further projects that align with Viettel's growing investments in artificial intelligence and telecommunications infrastructure throughout Southeast Asia. Moreover, the company intends to enhance its optical cable production capacities, complementing its current power solutions, to cater to the increasing demand for AI data centers.