LS ELECTRIC said on Aug. 10 that it has signed a memorandum of understanding with GS Engineering & Construction (GS E&C) in Seoul to jointly respond to changes in the artificial intelligence data center market, with a focus on next-generation direct current power distribution technologies.

The agreement comes as rapidly increasing power consumption from GPUs and other high-performance computing systems puts greater emphasis on power efficiency and stable electricity supply in AI data centers.

The signing ceremony at LS Yongsan Tower was attended by LS ELECTRIC Chairman Koo Ja-kyun, GS E&C CEO Huh Yoon-hong, LS ELECTRIC CEO Chae Dae-seok and other senior executives from the two companies.

Under the agreement, LS ELECTRIC and GS E&C will cooperate on developing next-generation DC distribution technologies designed to improve power efficiency at high-power, high-density AI data centers. The companies also plan to hold regular technology exchange meetings as they explore opportunities to apply the technologies to future projects.

The partnership will extend to power equipment for AI data centers being developed by GS E&C. LS ELECTRIC plans to provide key infrastructure equipment including switchgear, gas-insulated switchgear (GIS) and ultra-high-voltage transformers.

Power infrastructure has emerged as a major challenge for the global AI data center industry as large-scale GPU clusters require substantially more electricity than conventional computing facilities. The trend is increasing interest in DC distribution systems, which can reduce power conversion stages and associated energy losses compared with conventional AC-based architectures.

LS ELECTRIC has been expanding its technology portfolio to address the transition. Its DC power distribution lineup includes solid-state transformers (SSTs), solid-state circuit breakers (SSCBs) and energy storage systems (ESS).

The company has also built what it describes as the world's first factory operating entirely on DC power distribution at its Cheonan facility in South Korea, using the site to demonstrate DC technologies in an industrial environment.

LS ELECTRIC has accumulated experience in the data center sector by supplying power infrastructure solutions for large-scale projects involving major U.S. technology companies. The GS E&C partnership could broaden that business from individual power equipment toward integrated infrastructure solutions for AI data centers.

For GS E&C, combining its data center engineering and construction capabilities with LS ELECTRIC's power equipment and DC distribution technologies could help the company respond to increasingly complex power requirements as AI computing density rises.

The collaboration also highlights how AI investment is creating new demand across the electricity infrastructure value chain. Transformers, switchgear and GIS remain critical components, while technologies such as DC distribution, power conversion and energy storage are becoming increasingly important as data center operators seek to improve efficiency and accommodate higher power densities.

“AI data center infrastructure is rapidly shifting toward DC distribution to minimize power losses,” an LS ELECTRIC official said. “We will significantly strengthen cooperation with GS E&C based on our power solutions proven in the U.S. big-tech market and next-generation distribution technologies, including SSTs and SSCBs, to lead the global power infrastructure market.”