LS ELECTRIC Secures $125 Million Long-Term Deal to Supply Power Distribution Solutions for US Big Tech Data Centers

LS ELECTRIC has signed a long-term supply agreement with a major US big tech company to provide power distribution solutions for data centers, marking a significant step in the South Korean electrical equipment maker's push to secure leadership in the North American data center power infrastructure market. The deal underscores how surging AI-driven data center construction is reshaping procurement strategies across the power equipment industry, with long-term contracts increasingly becoming the preferred model for securing critical electrical infrastructure.

The contract, valued at approximately 168.9 billion Korean won ($125.23 million), covers a two-year long-term agreement (LTA) running from 2027 through 2028. The disclosed order value represents volumes scheduled for delivery in 2027, with the scope of the 2028 business to be determined through further negotiations with the big tech client. Under the agreement, LS ELECTRIC will supply 38kV high-voltage switchgear, a core power infrastructure component that reliably distributes high-voltage electricity to individual facilities within data centers and protects equipment in the event of power anomalies. The product demands high reliability and quality, given the need for AI data centers to maintain stable, round-the-clock power supply for large-scale operations.

The deal reflects a broader industry shift in which global big tech companies are increasingly favoring long-term supply contracts to secure power solutions seen as critical to AI data center construction. Despite some debate over an AI bubble, competition among global big tech firms to expand data center capacity is expected to intensify, accelerating the transition toward long-term supply agreements in the power solutions market. Beyond the high-voltage switchgear, LS ELECTRIC is also discussing additional supply of data center-tailored high-end power equipment, including low-voltage switchgear, distribution-class transformers, and ring main units (RMUs).

The company attributed the win to its technical capabilities in meeting stringent customer quality standards, rapid delivery response, and close customer management through localization. LS ELECTRIC has built a customer-tailored response system spanning design, production, delivery, and commissioning, while strengthening its stable supply capacity. The company operates a locally integrated value chain covering sales, design, production, and service, centered on LS ELECTRIC Utah in Cedar City, Utah, and its Bastrop campus in Texas, to actively respond to local customer demand. A company official said the long-term agreement was built on world-class data center solution technology and trust accumulated through executing customer-tailored data center projects, adding that LS ELECTRIC will continue expanding supply of high-value-added products for data centers to secure a stable revenue base and maximize profitability.