Infineon and LS Electric Partner to Develop DC Power Infrastructure for AI Data Centers

German semiconductor giant Infineon Technologies has entered a strategic partnership with South Korean electrical equipment manufacturer LS Electric to develop next-generation direct current (DC) power infrastructure tailored for the rapidly expanding AI data center market. The collaboration underscores the growing industry need for more efficient power distribution systems as AI workloads drive unprecedented energy demand in data centers worldwide.

The two companies signed a non-binding Memorandum of Understanding (MoU) to jointly develop technologies aimed at improving energy efficiency, system performance, and scalability in next-generation power infrastructure. According to the partners, the agreement was prompted by rapid advancements in AI and the consequent surge in data center power consumption, which require innovative and highly efficient power distribution solutions.

The partnership will focus on several critical areas of DC infrastructure, including power conversion systems for energy storage, solid-state transformers (SSTs), and solid-state circuit breakers (SSCBs). By targeting these technologies, the companies aim to significantly improve power and voltage conversion efficiency while enhancing overall system stability and reliability.

“High-efficiency DC architectures will play a key role in addressing increased energy demand while improving overall system performance and sustainability,” said Andreas Weisl, executive vice president and chief sales officer of Industrial & Infrastructure at Infineon. “By combining Infineon's semiconductor expertise with LS Electric's strength in system integration, we are well-positioned to accelerate the development and deployment of next-generation DC power infrastructure.”

Under the terms of the MoU, Infineon will support the development of DC power infrastructure through its extensive semiconductor portfolio, which includes power semiconductors, microcontrollers, and power control solutions. LS Electric, in turn, will leverage its deep expertise in power systems to lead system-level integration and implementation. This division of labor positions the partnership to offer complete, end-to-end DC power solutions for data centers.

“Through our collaboration with Infineon, which possesses world-leading power semiconductor technologies, we will strengthen our competitiveness in core DC power infrastructure solutions and will evolve into a total solutions provider leading the global AI data center market and future power markets,” said Kil Young Ahn, vice president and head of Production and R&BD at LS Electric.

LS Electric is the dominant player in South Korea’s commercial data center power infrastructure market, holding a 60 percent share. The company has already signed several deals this year with data center and technology firms. In October 2025, it partnered with Honeywell to develop combined hardware and software solutions that simplify power management and distribution for data centers. Infineon, one of Europe’s largest semiconductor manufacturers, was spun out of Siemens in 1999 and specializes in power electronics, automotive microcontrollers, sensors, and security chips. The partnership between these two industry heavyweights signals a significant push toward standardizing high-efficiency DC power architectures in the AI era.