Long-term supply agreement to run two years starting next year

38-kilovolt high-voltage switchgear to be supplied

LS Electric's UL-certified power distribution solution for data centers. [Provided by LS Electric]
LS Electric's UL-certified power distribution solution for data centers. [Provided by LS Electric]

LS Electric said Monday it has signed a $125.23 million (169 billion won) contract to supply power distribution solutions for a North American data center operated by a US big tech company.

The deal is structured as a long-term supply agreement running from next year through 2028. The contract value covers equipment scheduled for delivery in 2027, with the scope of the 2028 portion to be determined through further negotiations with the client.

The product to be supplied is a 38-kilovolt high-voltage switchgear panel, which distributes high-voltage power fed into data centers to individual facilities and protects equipment in the event of a power fault.

Major global big tech companies have increasingly favored long-term supply agreements to secure a stable supply of power solutions — a critical component in AI data center construction. As competition among big tech firms to expand data center capacity intensifies, procurement of power solutions is expected to shift further toward long-term contracts.

Following this high-voltage switchgear deal, LS Electric said it is in discussions to supply additional high-end power equipment tailored for data centers, including low-voltage switchgear, distribution transformers and ring main units. The company attributed the win to its technical capability in meeting demanding quality standards and its localized customer management approach.

"The trust we have built through world-class data center solution technology and customer-tailored project execution has led to this long-term supply agreement," an LS Electric official said. "We will continue to expand the supply of high-value-added products for data centers to secure a stable sales base and maximize profitability."

Meanwhile, LS Electric recently signed a separate $138.46 million contract with Bloom Energy to supply switchgear and distribution transformers.


yeongdai@heraldcorp.com