LS Electric announced on Tuesday that it has signed a distribution solution supply contract worth 34,258,500 USD with global power company Bloom Energy.
Under this agreement, LS Electric will provide key distribution systems, including low-voltage switchgear, for a hyperscale data center project. The center, being developed by Bloom Energy for a major energy infrastructure company in Wyoming, USA, will receive these supplies between January and June of next year.
An LS Electric spokesperson stated that this contract reaffirms our high-quality distribution solution technology in the global data center power market. It plans to strengthen the strategic partnership with Bloom Energy and leverage the local infrastructure to further expand the foothold in North America’s data center market.
Hyperscale data centers are massive facilities housing large-scale servers and storage devices. They are built to handle the extensive computational needs of AI services and cloud computing.
This deal represents an additional order from Bloom Energy, a long-standing client of LS Electric. The company aims to solidify its position as a key supplier for Bloom Energy’s power equipment, leveraging its distribution technology, quality, and delivery capabilities.
LS Electric is bolstering its next-generation distribution solutions to meet the growing power demands of AI data centers. The company has established a comprehensive local value chain in the U.S., covering sales, design, production, and services, with production hubs in Utah (LS Electric Utah) and Texas (Bastrop Campus).
At its Cheonan facility, LS Electric has constructed the DC Factory, a manufacturing plant that implements direct current (DC) distribution. This method involves supplying power in DC form, and the DC Factory applies this concept in a real manufacturing environment.
LS Electric plans to refine its DC distribution solutions based on the DC Factory’s operations, positioning itself for the emerging next-generation data center market.
The expansion of its North American data center business has driven LS Electric’s financial growth. In the second quarter, the company posted record-breaking results with sales of 1.577 trillion KRW (about 1.11 billion USD) and an operating profit of 178.5 billion KRW (about 126 million USD). North American sales reached a new quarterly high of approximately 400 billion KRW (about 283 million USD). The company’s total cumulative order backlog has now exceeded 7 trillion KRW (about 4.95 billion USD).
