LS Electric, GS E&C team up for AI data center DC power project

LS Electric is joining forces with GS Engineering & Construction to make a full push into the AI data center market.

LS Electric announced Monday that it signed a memorandum of understanding with GS Engineering & Construction at LS Yongsan Tower to jointly respond to changes in the AI data center business environment.

The signing ceremony was attended by LS Electric Chairman Koo Ja-kyun, GS Engineering & Construction CEO Heo Yun-hong, LS Electric CEO Chae Dae-seok and other senior executives from both companies. The two sides shared their outlook on the global AI data center market and discussed plans for technology cooperation centered on direct current (DC) distribution, which has emerged as a key pillar of power infrastructure in the AI era.

Under the agreement, the two companies will cooperate on developing next-generation DC distribution technology to improve power efficiency at high-power, high-density AI data centers and will hold regular technical exchange sessions. They also plan to maximize business synergies by supplying key power equipment — including switchboards, gas-insulated switchgear and ultra-high-voltage transformers — to AI data center projects pursued by GS Engineering & Construction.

AI data centers, where power consumption has surged with the adoption of high-performance GPUs, are accelerating the shift to DC distribution, which can dramatically reduce power conversion losses compared with conventional alternating current (AC) systems.

LS Electric has commercialized a core DC ecosystem lineup comprising solid-state transformers (SST), solid-state circuit breakers (SSCB) and energy storage systems (ESS). The company has also built and operates the world's first fully DC-powered "DC Factory" at its Cheonan plant, reinforcing its technological leadership. It has further built up business expertise and proven reliability by supplying power infrastructure solutions to large-scale data center projects run by major US technology companies.

"The AI data center paradigm is rapidly shifting toward DC distribution, which minimizes power loss," an LS Electric official said. "We will strengthen cooperation with GS Engineering & Construction on the basis of our top-tier power solutions proven in the US market and our next-generation distribution technology, and lead the global power infrastructure market."