"First Year of Business Expansion Success... We Will Further Grow Our Sales"
Virtuous Cycle Established Through Additional Orders from Big Tech Clients
The value of LS Electric's data center business orders has surpassed 1 trillion won. This achievement is attributed to the company’s strategy of supplying customized high-end power solutions, particularly to major North American big tech companies.
On December 23, LS Electric announced that its global data center business orders, primarily in North America, are expected to exceed 1 trillion won this year, marking an all-time high. Of this amount, the North American data center business alone has surpassed 880 billion won, driving the company’s performance. Domestic orders have also reached 200 billion won.
Koo Ja-kyun, Chairman of LS Electric, is delivering a welcoming speech at the completion ceremony of the LS Electric Bastrop Campus located in Texas, USA, in April this year. LS Electric
LS Electric began the year by securing a 160 billion won power equipment supply contract with a North American artificial intelligence (AI) big tech company, followed by a series of additional data center-related business orders. The company has continued its rapid growth in the second half of the year, securing nearly 300 billion won in new orders. LS Electric counts Microsoft among its clients, and the continued increase in orders from such customers is seen as recognition of its technical capabilities and service excellence. With its comprehensive solutions spanning from transformers to power distribution, and as local customer references accumulate, the company is expected to establish a virtuous cycle that leads to even more business opportunities.
LS Electric is enhancing its brand recognition through localization strategies and focusing on business expansion via partnerships with local power equipment and infrastructure companies. Its strategy to expand its portfolio from traditional data center power distribution solutions to ultra-high-voltage transformers and microgrid solutions is now yielding tangible results. The global data center market is projected to grow to 1.14 trillion dollars (approximately 1,700 trillion won) by 2035.
The domestic data center solutions business is also performing steadily, supporting the company’s overall results. LS Electric holds a 70% market share in the domestic data center power solutions market, demonstrating its unrivaled capabilities. With domestic data center investment expected to increase from 6 trillion won last year to 10 trillion won by 2028, LS Electric plans to pursue more aggressive order activities to further expand its market share.
An LS Electric representative stated, “This year marks the first year that our market expansion strategy, based on world-class power solutions, has produced significant results,” adding, “As data center investments by big tech companies are expected to increase significantly not only in Korea but also in North America and ASEAN regions, we will secure solid business opportunities and further expand our sales.”
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