■ Signed a contract with Bloom Energy to supply distribution solutions for a data center in New Mexico
■ Order-winning streak amid expansion of AI and the North American power market ··· Achieved best-ever first-quarter results
■ Leading the distribution supercycle with a thorough localization strategy and world-leading technology
LS ELECTRIC is once again drawing attention as a key player in North America’s power infrastructure supercycle, after succeeding in a series of large orders in the North American data center market.
On the 29th, LS ELECTRIC announced that it signed a distribution solutions supply contract worth about KRW 319.0 billion (USD 220 million) with global power company Bloom Energy.
LS ELECTRIC will supply a full range of key distribution systems—including switchgear and transformers—for the power infrastructure construction project of a hyperscale data center being developed in New Mexico by a major local big-tech company, as part of Bloom Energy’s project.
This is widely seen as significant in that, amid the combination of expanding data center investment by global big-tech companies driven by the spread of the AI industry and growing demand for power infrastructure expansion in the U.S., LS ELECTRIC has proven its technological capabilities and project execution capacity by winning large-scale projects consecutively in the North American market.
Following its additional win after a KRW 170 billion-scale major big-tech data center power solutions project earlier this month, LS ELECTRIC has continued to sign large contracts in succession. These order wins are also translating into performance. LS ELECTRIC posted consolidated Q1 revenue of KRW 1.3766 trillion and operating profit of KRW 126.6 billion this year, marking its best-ever first-quarter results.
Because data centers must reliably supply enormous amounts of electricity 24 hours a day, key competitive factors include high-efficiency, high-reliability distribution equipment manufacturing technology, fast delivery, and a stable maintenance system.
Leveraging its quality competitiveness and rapid customer response capabilities, LS ELECTRIC is quickly expanding its footprint in the North American market. It is also accelerating efforts to strengthen its local production base. By reinforcing its supply chain around its bases in Utah and Texas and increasing the share of local production, delivery competitiveness is expected to improve significantly.
LS ELECTRIC is also ramping up its “DC distribution” business targeting the next-generation data center market. Interest in DC distribution is growing rapidly in the data center industry, as it can improve energy efficiency by reducing power conversion stages. LS ELECTRIC’s strategy is to preempt the market based on its world-class low-voltage DC distribution (LVDC) solutions and its “DC Factory” operational know-how at its Cheonan site.
Recently, the North American power market has been shifting its center from “transmission” to “distribution” due to the spread of AI data centers. Beyond expanding investments in transmission infrastructure—centered on extra-high-voltage transformers for power plants and substations—investments in distribution infrastructure such as data centers and microgrids are also growing rapidly. LS ELECTRIC plans to leverage the references and technological capabilities it has built locally to secure leadership in the local distribution supercycle.
An LS ELECTRIC official said, “In the U.S. data center market, investments in distribution infrastructure are expanding rapidly due to the spread of AI and rising power demand,” adding, “With expanded local supply chains, strengthened partnerships, and core technological capabilities such as next-generation DC solutions, we will increase large-scale order wins in the North American market and further accelerate our growth momentum.”
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[Supplementary Material] Bloom Energy
Bloom Energy is a global power solutions company that provides solid oxide fuel cell (SOFC)-based power solutions across various industries. It is used in the industry based on its high generation efficiency, rapid deployment, and stable power supply capabilities. Traditional power plants take years for permitting and construction, and they also face heavy burdens from transmission grid and environmental regulations. In contrast, Bloom Energy’s SOFC is a modular power-plant-type solution that uses natural gas or hydrogen as fuel, and big-tech companies can install it on-site like containers.