Korean power equipment maker strengthens its position in North America as AI-driven energy demand accelerates
LS Electric has landed a 132.9 billion won (about $91.5 million) order to provide key power equipment for a hyperscale AI data center under construction in Tennessee. The U.S. facility—run by an unnam ed major tech company—will use LS Electric’s high- and low-voltage switchgear and transformers to handle the heavy electricity demands of advanced AI and machine learning systems.
Under the agreement, the company will provide a full range of power distribution equipment for electrical rooms and mechanical facilities dedicated to AI servers. All deliveries are scheduled for completion by April next year, making this one of LS Electric’s largest overseas power system contracts to date.
Part of a Much Larger Partnership
Although the name of the U.S. client has not been revealed, LS Electric confirmed that the two companies already have a substantial supply relationship. Between late last year and early this year, they signed contracts worth 310 billion won, also for the same Tennessee project. The latest order expands this partnership and reflects strong confidence in LS Electric’s execution capabilities.
A company representative emphasized the strategic importance of the new contract, saying:
“This deal is significant as it demonstrates LS Electric’s ability to supply comprehensive power equipment for a hyperscale data center in the U.S., which lies at the center of global AI investment.”
A Complete Power Solution for Hyperscale Needs
The new agreement enables LS Electric to deliver the full suite of power systems needed for a next-generation AI data center. This includes equipment spanning the entire voltage range—critical for facilities built to handle massive computational loads.
According to LS Electric, the contract proves that global operators view the company as a reliable supplier capable of supporting complex and high-density power requirements. The firm also noted a sharp rise in inquiries from North American data center developers seeking long-term power equipment partnerships.
A Market Shaped by Power Constraints
The rising interest is driven by a structural problem facing the U.S. technology sector: the country’s aging electricity grid is struggling to keep up with explosive AI-driven demand.
Large data center operators and hyperscalers across the U.S. are encountering delays and uncertainty in securing sufficient power for new facilities. As a result, many are turning to alternative solutions such as:
- On-site microgrids
- Advanced smart grid systems
- High-efficiency transformers and switchgear
LS Electric said this trend is creating new opportunities for power equipment manufacturers.
One company official explained:
“We are receiving an increasing number of inquiries about long-term supply contracts from several clients in North America, where power supply planning is being disrupted. We expect rapid growth in the region’s power distribution market.”
Why AI Data Centers Need Specialized Power Systems
Hyperscale data centers built for AI and machine learning demand far more stable and efficient power distribution than traditional cloud facilities. AI servers consume higher levels of electricity, generate more heat, and require uninterrupted power to process real-time workloads.
Industry experts note that components such as high-reliability switchgear and transformers are now central to AI infrastructure planning. LS Electric’s equipment is designed to maintain stable power delivery even under heavy computational loads, making it a suitable choice for the Tennessee project.
The timeline for delivery—April next year—aligns with the data center’s construction schedule and highlights the urgency of building adequate energy capacity for AI expansion.
Strengthening Korea’s Presence in the Global AI Infrastructure Supply Chain
By securing another major order from a prominent North American tech company, LS Electric is strengthening South Korea’s presence in the global AI data center supply chain. The company already has expertise in automation, smart energy management, and industrial power systems, and aims to leverage this foundation as demand for AI-ready infrastructure grows worldwide.
The latest contract positions LS Electric as a key contributor to the rapid expansion of advanced digital facilities across the United States—an increasingly important market as the global AI race accelerates.
