LS Electric Signs $125M Long-Term Supply Contract for High-Voltage Switchgear with US Big Tech AI Data Center
LS Electric secures a $125M order from a US tech giant for 2027 AI data center power distribution, highlighting the shift toward long-term equipment contracts.
ImportanceMaterialEvidenceE3 inspectableWrite-upQuick
South Korean electrical equipment manufacturer LS Electric announced on October 19 that it has signed a long-term supply contract worth 168.9 billion won (approximately $125.23 million) with an unnamed US Big Tech company to provide high-voltage power distribution solutions for its artificial intelligence data centers.
The contract spans two years, from 2027 to 2028, but the disclosed amount reflects only the pre-order volume for delivery in 2027; the scale for 2028 will be determined through separate negotiations. The core product is 38kV-class high-voltage switchgear, which distributes incoming high-voltage power to various facilities and protects equipment during anomalies, serving as critical infrastructure for stable, round-the-clock operation of high-load AI data centers.
LS Electric noted that despite concerns about an AI investment bubble, major technology companies are increasingly preferring long-term procurement agreements to secure timely access to essential data center construction equipment. Beyond high-voltage switchgear, the two parties are discussing expanding the supply scope to include low-voltage switchgear, distribution transformers, and high-pressure gas load switches, though final terms remain undetermined.