South Korea: LS Electric is seeing stronger demand for its power distribution solutions as AI data centres drive rapid growth in North American power infrastructure investment.
According to iM Securities, global data centre power consumption is expected to rise from around 415 TWh in 2024 to about 945 TWh by 2030, more than doubling. The firm said the spread of AI data centres is shifting investment focus in North America from transmission infrastructure towards distribution systems, creating momentum for LS Electric.
LS Electric’s North American big tech data centre orders in the first half of the year have already exceeded $800 M (1.2 T won), compared with $530 M (800 B won) for the whole of the previous year. Recent orders include EHV voltage transformers, switchgear and distribution transformers for hyperscale data centres, and distribution solutions for Bloom Energy.
iM Securities said the growth of on-site generation by major technology companies is also supporting long-term demand. Companies such as Microsoft, Google and Meta are increasingly looking to secure power directly at data centre sites, increasing the need for microgrids, DC-based power systems, switchgear and distribution equipment.
The analyst also noted that distribution-related projects tend to have shorter lead times than large transmission infrastructure. This means orders secured in the first half of the year could contribute to LS Electric’s revenue more quickly in the second half.
iM Securities expects LS Electric’s full-year revenue to rise by 26 % year on year, with operating profit projected to increase by 55.4 %.
Source: Chosun Biz
