LS Electric, known for electrical power equipment, industrial automation systems, and smart energy solutions, announced that it has secured a 96 billion won ($64 million) contract to deliver high-voltage switchgear for a microgrid system at a U.S. data center, marking its latest achievement in the expanding North American power infrastructure sector.
The agreement includes the provision of 38kV-class high-voltage distribution panels intended for continuous 24-hour power use.
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Delivery is planned to begin in December of this year and finish in August 2027. The customer was not identified by the company.
The recognition arrives as a rise in AI usage and the growth of cloud infrastructure has led to a significant increase in data center energy consumption throughout North America. The need for on-site microgrids — autonomous systems that produce, store, and distribute electricity independently from the main grid — has increased, as data center operators encounter three to five year delays for utility grid connections in the US.
LS Electric stated it is part of a larger transition in its business model, evolving from equipment supply to an integrated smart energy provider and integrating renewable energy and gas generation.
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The Korean firm also emphasized the efficiency improvements from direct current distribution systems, which can lower power conversion losses by 10 to 15 percent in microgrid settings.
LS Electric stated that the foundation for powering AI data centers lies in a highly efficient grid that can manage substantial power demands with consistent reliability, also mentioning that the company aims to establish a presence in the swiftly expanding local microgrid sector based on its established technology.
Earlier, LS Electric announced that it has won a significant contract valued at $70 million (105.6 billion won) to provide its extra-high-voltage transformers to a U.S. energy infrastructure company.
According to the agreement, LS Power Solution, which LS Electric acquired in 2024, will provide its 345-kilovolt-class transformers for a major data center run by a large tech company in the US. According to LS Electric, deliveries are planned from the fourth quarter of 2027 through the first half of 2028.
The new contract will strengthen the company’s standing in North America as electricity demand surges alongside the growth of artificial intelligence (AI) and cloud computing. The technological shift demands increased funding for reliable and effective power systems throughout the area.
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The shift has been additionally strengthened by a recent commitment from seven international technology companies, which promised to obtain electricity for their data centers from their own power generation facilities instead of relying on public grids.
LS Electric has been enhancing its position throughout the data center power value chain.
In September of last year, the firm obtained a $46 million deal in the US to provide its power distribution solutions for a microgrid initiative. The recent agreement broadens its involvement to encompass extra-high-voltage transformers, highlighting the company's extensive technological expertise across transmission and distribution.