LS Electric said Monday that its subsidiary LS Power Solution has secured a $70.26 million contract with a US energy infrastructure company to supply extra-high-voltage transformers.
Under the deal, LS Power Solution will deliver 345-kilovolt transformers for a microgrid powering a large-scale data center in the central US, with shipments scheduled from the fourth quarter of 2027 through the first half of 2028.
The contract comes as demand for electricity surges alongside the rapid expansion of artificial intelligence and cloud computing. In North America, data center operators are increasingly turning to independent microgrids — separate from existing power networks — to ensure a stable and efficient power supply.
Major global tech companies have recently moved in the same direction, pledging to source electricity directly from dedicated power plants to avoid pushing up electricity costs for the broader grid.
The deal builds on LS Electric’s earlier $46 million contract secured in September for a data center microgrid project, further strengthening its presence across the data center power infrastructure value chain.
By securing the transformer supply contract through its subsidiary, LS Electric has demonstrated competitiveness across both transmission and distribution segments.
The company said the project will help showcase its capabilities in ultra-high-voltage transformers as it looks to expand its footprint in North America’s aging power grid replacement market and the fast-growing data center energy sector.
By Jeon Ji-woo (jwjeon7625@heraldcorp.com)
