LS Electric, KT Cloud team up to supply and develop modular data center infrastructure

LS Electric signed a strategic partnership MOU with KT Corp's cloud unit KT Cloud on Wednesday at LS Yongsan Tower in Seoul, the company announced Thursday.

LS Electric CEO Chae Dae-seok and KT Cloud CEO Kim Bong-gyun attended the signing ceremony along with other senior executives from both companies.

The agreement aims to deepen cooperation on power facility design and supply, accelerate next-generation technology exchange, and strengthen business competitiveness as AI data centers grow larger and more power-intensive.

The two companies will jointly research core power solutions for building modular data centers optimized for next-generation AI data center infrastructure, collaborating closely from the initial design stage. LS Electric plans to supply key power equipment — including ultra-high-voltage transformers and gas-insulated switchgear — in a timely and stable manner for new AI data center projects that KT Cloud develops, with plans to expand the product lineup to include uninterruptible power supplies and cooling systems.

Modular data centers have been drawing growing attention as the rapid expansion of data center infrastructure has emerged as a critical challenge. The modular approach involves precision-manufacturing standardized server rooms, power supply chains and cooling modules at a factory before assembling and installing them on site. The method dramatically cuts construction time compared with conventional reinforced-concrete building methods and allows flexible scale-up as needed.

"As the spread of generative AI drives explosive growth in power demand, the ability to deliver stable and efficient high-power infrastructure has become the defining competitive edge in the data center industry," an LS Electric official said. The official added that the company would "strengthen its technological capabilities for next-generation AI data centers and solidify its market position through the partnership with KT Cloud, which holds top-tier cloud and data center capabilities in South Korea."

Meanwhile, LS Electric has been supplying core power solutions — including ultra-high-voltage transformers and high-voltage power distribution systems — to hyperscale AI data centers being developed by major Big Tech companies in North America. The company recently signed a contract worth $165.72 million to provide AI data center power equipment to a North American Big Tech firm.