LS Electric to Invest Further in Expanding US Power Distribution Panel Plant Amid Rising Power Demand

Impact of Growing Power Grid Demand from AI Data Centers and More

LS Electric is making additional investments in its North American power distribution panel (power distribution equipment) solution production infrastructure. This move is driven by the rising power demand from big tech AI data centers and the need to replace aging power grids.

Chungnam LS Electric Cheonan DC Factory. Photo by Jinhyung Kang

According to industry sources on January 30, LS Electric has recently decided to invest an additional $168 million (approximately 240 billion won) over the next 10 years in its power distribution panel manufacturing subsidiary, MCM Engineering II, located in Cedar City, Utah, United States.

The company aims to increase its annual production capacity from the current 50 billion won to a maximum of 150 billion won, and to expand the factory site from the existing 13,223 square meters (about 4,000 pyeong) to approximately 79,338 square meters (about 24,000 pyeong). Construction is scheduled to begin within the first half of this year.

Once completed, the annual production capacity for power distribution panels will nearly triple, rising from 1,200 units to around 3,600 units.

Previously, LS Electric acquired MCM Engineering II in 2022 by investing $6.3 million (about 7.7 billion won) to strengthen its North American power distribution business. After completing the expansion of its second plant early last year, the company began full-scale production in the second half of the year.

According to industry sources, the global power distribution equipment market was valued at $287.7 billion in 2024 and is expected to grow at an average annual rate of 7.6%, reaching $613.2 billion by 2034.