LS Electric is accelerating its expansion into the North American market after securing a major contract to supply ultra-high voltage transformers for an AI-driven data center power infrastructure project.
The company announced on April 6 that its subsidiary, LS Power Solution, has signed a contract worth approximately $70.26 million with a U.S. energy infrastructure firm. Under the agreement, LS Power Solution will supply 345kV ultra-high voltage transformers for a microgrid designed to power a large-scale data center in the central United States. Deliveries are scheduled from the fourth quarter of 2027 through the first half of 2028.
As demand for artificial intelligence and cloud computing continues to surge, electricity consumption from data centers is rising rapidly. In response, investments in stable and efficient power infrastructure are expanding across North America. A growing number of projects are focusing on building independent microgrids—separate from traditional power grids—to enhance energy reliability for data centers.
Recently, seven global big tech companies pledged to source electricity for their data centers from self-built power generation facilities rather than relying on external grids, in an effort to avoid increasing electricity costs for the general public. This trend is positioning microgrids as a key solution for achieving energy self-sufficiency in data centers.
LS Electric has been strengthening its presence across the data center power supply value chain. In September last year, the company secured a $46 million contract to provide distribution solutions for a data center microgrid project. The latest transformer deal further demonstrates its capabilities in both transmission and distribution infrastructure.
LS Power Solution, LS Electric’s ultra-high voltage transformer subsidiary, was acquired in 2024 and rebranded from KOC Electric. The company is recognized as one of the few domestic players with 154kV-class technology and has supplied transformers to Korea Electric Power Corp. Since the acquisition, it has expanded its product lineup to include 345kV-class transformers while broadening its customer base from domestic to global markets.
With this project, LS Electric aims to reinforce its competitiveness in ultra-high voltage transformer technology and expand further into North America, targeting opportunities in aging grid replacement and new data center infrastructure development.
Global demand for data center power is projected to grow from 40 gigawatts (GW) in 2025 to 106GW by 2035. The North American data center power infrastructure market is expected to expand from $8.65 billion in 2025 to $37.2 billion by 2035, representing an average annual growth rate of around 16%.
An LS Electric official said that while big tech companies are the end customers, their identities cannot be disclosed due to non-disclosure agreements. The official added that the company has demonstrated its technological reliability across both transmission and distribution sectors by supplying solutions for data center microgrids.
A representative from LS Power Solution noted that the rapid increase in data center power demand in North America is driving the construction of microgrids to reduce strain on existing grids. The company expects this contract to strengthen its brand competitiveness in the fast-growing microgrid market.
