en.Wedoany.com Reported - LS Electric of South Korea recently disclosed that it has signed a $115 million contract to supply power equipment for a North American data center. According to the company's announcement, the contract covers switchgear and distribution transformers. The customer is a major North American large-scale tech company building a hyperscale data center, with the specific client name not disclosed. Contract fulfillment will rely on LS Electric's two major production bases operating in North America: the MCM Engineering II plant in Utah and the Bastrop campus in Texas.

This marks LS Electric's second major order in the North American market within a week. On April 6, its subsidiary LS Power Solution announced signing a contract worth 106.6 billion won to supply ultra-high voltage transformers. The company will provide 345 kV ultra-high voltage transformers for a data center microgrid project of a large tech company in the Midwestern United States, with delivery scheduled from the fourth quarter of 2027 to the first half of 2028. In a statement, LS Electric noted that North American power infrastructure investment continues to grow, driven by rising power demand from AI and cloud computing expansion.

Global data center power consumption continues to climb. According to International Energy Agency data, global data center electricity consumption exceeded 400 terawatt-hours in 2024, equivalent to the power usage of a medium-sized country, and is projected to more than double by 2030. LS Electric forecasts that the North American data center infrastructure market will grow from $15.8 billion in 2025 to $23.5 billion in 2031, representing a compound annual growth rate of 6.7%.

LS Electric is accelerating production expansion at its two North American production bases. The Bastrop campus in Texas covers 46,000 square meters with a building area of 3,300 square meters. Officially commencing operations in April 2025, it is positioned as an integrated base combining production, R&D, and design, focusing on manufacturing medium and low voltage power equipment and distribution systems for data centers of major U.S. tech companies. Meanwhile, the MCM Engineering II plant in Utah received tax abatement incentives from the Utah Inland Port Authority in March 2026, allowing up to a 30% reduction in new property taxes over the next 25 years. The company plans to invest $168 million to expand the plant area from 13,223 square meters to 79,338 square meters—a sixfold increase—and construct three new production buildings, aiming to triple production capacity by 2030. By 2030, LS Electric's total investment in its North American manufacturing bases is expected to reach $240 million.

LS Electric stated in a release: "As hyperscale data centers rapidly expand, demand for power infrastructure is surging, and the company's technological capabilities are gaining recognition in the global market." At the Bastrop campus completion ceremony, Chairman Koo Ja-kyun stated plans to increase the overseas sales ratio to 70% and become one of the top four power companies in the United States through comprehensive deployment of localized production, technology, and service infrastructure.

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