GS Engineering & Construction headquarters. [GS Engineering & Construction]
GS Engineering & Construction headquarters. [GS Engineering & Construction]

GS Engineering & Construction announced Monday that it has partnered with LS Electric to strengthen its competitiveness in the AI data center business.

The two companies signed an MOU for "joint response to changes in the AI data center business environment" at LS Yongsan Tower in Yongsan-gu, Seoul. GS Engineering & Construction CEO Heo Yun-hong, LS Electric Chairman Koo Ja-kyun and LS Electric CEO Chae Dae-seok were among the attendees.

Under the agreement, the two companies will work together to navigate the rapidly changing AI data center market and technology landscape, and cooperate to ensure the smooth execution of related projects.

The partnership will establish a framework for GS Engineering & Construction to receive timely supplies of key power equipment for its current and planned AI data center projects through LS Electric. The arrangement is expected to enhance the stability and execution competitiveness of the AI data center business, widely regarded as a key growth driver.

AI data centers require higher power density and cooling performance than conventional cloud data centers due to the large-scale operation of high-performance computing equipment such as GPUs. Large-scale power intake and reliable substation and distribution infrastructure are considered core elements of AI data center projects.

The two companies also agreed to jointly explore next-generation power solutions to keep pace with the technological shift from cloud to AI data centers. Specific areas of cooperation include holding technology exchange sessions on modular data center and direct-current distribution-based power solutions, jointly addressing the design and technical requirements of major customers such as global big tech companies, and collaborating on the supply of power equipment for AI data center projects.

"Power infrastructure competitiveness is the key factor that determines the success or failure of an AI data center project," a GS Engineering & Construction official said. "Through this agreement, we will continuously strengthen our AI data center competitiveness by jointly addressing not only power equipment supply but also next-generation power solutions and the technical requirements of global customers."

Meanwhile, GS Engineering & Construction recently announced preliminary second-quarter earnings of 2.78 trillion won ($1.96 billion) in revenue and 91.4 billion won in operating profit.


hope@heraldcorp.com