The company is leveraging its microgrid business after securing a major contract to supply ultra-high voltage transformers.
An official introduces an ultra-high voltage transformer at the LS Power Solution plant in Ulsan. (Photo courtesy of LS Electric)
Amid a surge in data center power demand driven by the expansion of artificial intelligence (AI), LS Electric is accelerating its push into the North American power infrastructure market. The company is leveraging its microgrid business after securing a major contract to supply ultra-high voltage transformers.
LS Electric said on April 6 that its subsidiary LS Power Solution signed a contract worth approximately $70.26 million, or about 106.6 billion won, to supply ultra-high voltage transformers to a U.S. energy infrastructure company.
Under the agreement, LS Power Solution will supply 345-kilovolt ultra-high voltage transformers for a microgrid designed to power a large-scale data center being built in the central United States. Deliveries are scheduled to begin in the fourth quarter of 2027 and continue through the first half of 2028.
According to the company, power consumption at data centers has surged in recent years due to the expansion of AI and cloud services, leading to a growing number of cases in which companies are building independent power systems, known as microgrids, to reduce reliance on existing power grids.
In particular, global big tech companies are also pursuing power procurement through their own power generation facilities to ease the burden of securing electricity. As a result, microgrids are gaining attention as a key means of increasing the power self-sufficiency of data centers.
LS Electric previously secured contracts to supply power distribution solutions for data center microgrid projects and is now strengthening its power infrastructure capabilities across both transmission and distribution by adding ultra-high voltage transformers to its portfolio.
Global data center power demand is projected to grow from about 40 gigawatts in 2025 to 106 gigawatts by 2035. Over the same period, the North American power infrastructure market is expected to expand from $8.6 billion to $37.2 billion, with a compound annual growth rate of 16 percent.
An LS Electric official said that although the client is a global big tech company, the specific name cannot be disclosed due to a non-disclosure agreement.
Jung Suk-yee
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