AI data centers increase power equipment demand
The expansion of artificial intelligence (AI) data centers is emerging as a growth driver for the power infrastructure industry. LS ELECTRIC is expanding its business in the power equipment market for the AI era by increasing supplies of switchgear and extra-high-voltage transformers, particularly in North America.
AI data centers need substantial power supply capacity to operate large numbers of servers and cooling equipment reliably. Extra-high-voltage transformers change voltage levels to transmit power, while switchgear distributes and controls the supplied power for individual facilities. The expansion of AI computing infrastructure therefore leads to increased demand for power equipment.
LS ELECTRIC's switchgear revenue in the third quarter of this year increased 120% year on year, while extra-high-voltage transformer revenue rose 106%. Its mass-produced power distribution device business also grew 32%, strengthening a business structure that serves both large projects and ongoing demand for power equipment.
North American growth and quarterly results
Growth in the North American market is also notable. Third-quarter North American revenue was approximately 500 billion won, up 25% from the preceding quarter. LS ELECTRIC is expanding investment in its production location in Utah and the Bastrop campus in Texas to meet local power infrastructure demand.
Business expansion also translated into financial results. In its third-quarter results disclosed on the 21st, LS ELECTRIC reported revenue of 1,877.8 billion won and operating profit of 233.5 billion won. Its run of operating profits, which began in the fourth quarter of 2001, reached 100 quarters, and its order backlog at the end of the third quarter was approximately 7 trillion won.
Global markets and growth plans
In Europe, the company is responding to renewable energy expansion and grid modernization, while in the Middle East it is targeting demand from energy infrastructure investment. As power supply reliability and equipment operating efficiency become more important, applications for its business portfolio, spanning low- and medium-voltage distribution to extra-high-voltage power equipment, are also expanding.
An LS ELECTRIC representative outlined plans to increase AI-related power infrastructure orders and strengthen a structure for sustained growth, drawing on the company's accumulated power equipment capabilities and global production base.
Growth in the AI industry is extending beyond semiconductors and servers to the power infrastructure that operates them. LS ELECTRIC's business expansion illustrates how reliable power supply technology is becoming a key competitive factor for AI data centers and next-generation industrial infrastructure.
Original Korean article: e-science.co.kr
English brief by Korea Wind Intelligence, koreawindintel.com
