Partnership also targets modular data centers as AI-driven power demand accelerates
LS ELECTRIC has partnered with kt cloud to expand its presence in the fast-growing AI data center infrastructure market, combining its power equipment capabilities with kt cloud’s expertise in cloud and data center operations.
The two companies signed a memorandum of understanding on Sept. 2 at LS Yongsan Tower in Seoul to establish a strategic partnership for AI data centers. The signing ceremony was attended by LS ELECTRIC CEO Chae Dae-seok and kt cloud CEO Kim Bong-kyun, along with senior executives from both companies.
The partnership comes as the rapid adoption of generative AI drives larger data centers and sharply increases their power requirements. For facilities packed with high-performance GPUs and servers, reliable power supply and efficient distribution systems have become critical infrastructure.
Under the agreement, LS ELECTRIC will supply key power equipment for new AI data center projects developed by kt cloud, including extra-high-voltage transformers, gas-insulated switchgear (GIS) and switchboards.
The company also plans to expand the scope of supply to uninterruptible power supply (UPS) systems and cooling infrastructure.
Cooperation to begin at the design stage
The partnership goes beyond equipment procurement. LS ELECTRIC and kt cloud plan to work together from the early design stages of future AI data centers and jointly research power solutions optimized for modular data center infrastructure.
Modular data centers are built by manufacturing standardized server rooms, power infrastructure and cooling modules at factories before assembling them on site. Compared with conventional reinforced-concrete construction, the approach can shorten construction periods and make capacity expansion more flexible.
That flexibility is becoming increasingly important as cloud and AI service providers seek to add computing capacity quickly in response to surging demand.
LS ELECTRIC will contribute its expertise in power equipment and electrical infrastructure, while kt cloud will bring its experience in developing and operating cloud and data center facilities.
North American AI data center experience expands to domestic projects
The agreement also builds on LS ELECTRIC’s growing exposure to the AI data center market in North America.
The company has secured orders for extra-high-voltage transformers, high-voltage distribution systems and other power solutions for hyperscale AI data centers being developed by major technology companies in the region.
As AI workloads push data center power consumption higher, infrastructure requirements are expanding beyond simply supplying electricity. Power transformation and distribution, backup systems and cooling must increasingly be designed as an integrated system to improve reliability and efficiency.
LS ELECTRIC’s plan to broaden its offering from transformers, GIS and switchgear to UPS and cooling systems reflects that shift.
If the partnership develops into specific data center projects, it could also provide LS ELECTRIC with an opportunity to move beyond individual equipment sales toward a broader infrastructure solution model covering much of the AI data center power chain.
“As generative AI spreads rapidly and electricity demand surges, stable and efficient high-power infrastructure technology has become a key factor determining the competitiveness of data centers,” an LS ELECTRIC official said.
The official added that the partnership with kt cloud would strengthen the company’s ability to respond to next-generation AI data center requirements and reinforce its competitiveness in the market.
