LS Electric is set to invest an additional 200 billion KRW (approximately 150 million USD) to expand its high-voltage switchgear factory in Enoch, Utah. This strategic move aims to meet the growing demand for AI data centers and to address the need to modernize aging power grids across the United States.
Industry sources reported on Friday that LS Electric recently inked a deal with the state of Utah to invest about 150 million USD in its Enoch high-voltage switchgear facility.
The expansion plan will boost the annual production capacity from the current 50 billion KRW (approximately 37.5 million USD) to approximately 150 billion KRW (about 112.5 million USD). The factory’s footprint will grow from about 13,223 square meters to roughly 79,338 square meters. The company is targeting to break ground in the first half of this year.
Utah offers tax incentives to companies that meet investment and job creation targets, a benefit LS Electric is poised to leverage.
LS Electric’s U.S. factory expansion is a calculated response to the booming demand for high-voltage switchgear. These crucial devices safely step down high-voltage electricity from power plants or substations and distribute it across multiple circuits for end-use.
The North American power sector is riding a wave of super high-voltage upgrades as it replaces outdated transmission infrastructure. Experts predict an even larger boom in the distribution market on the horizon. The North American distribution market is expected to dwarf the super high-voltage transformer market by a factor of six.
In the past year, LS Electric’s global data center-related orders surpassed 1 trillion KRW (approximately 750 million USD). The company secured contracts spanning from power infrastructure for major tech giants’ data centers to advanced distribution systems integrated with microgrids.
To solidify its foothold in North America, LS Electric blazed a trail in 2014 as the first South Korean heavy electrical equipment manufacturer to obtain UL certification. Since then, it has amassed over 300 UL certifications, leading the industry in its home country.