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LS Electric has secured a $46 M contract to supply distribution solutions for a large US data centre microgrid project. Delivery is scheduled between February and July 2026.

The company will provide distribution switchgear packages for gas power facilities forming part of the microgrid. These systems are designed to ensure a stable and efficient electricity supply for the data centre, which will host energy-intensive AI servers.

The project reflects wider trends in the US market. Rapid growth in AI and cloud computing has placed pressure on the country’s existing transmission infrastructure. In response, new data centres are increasingly adopting microgrid systems that allow them to self-generate and optimise electricity use, reducing reliance on ageing networks.

LS Electric has established itself as a key player in smart grid and microgrid technology. The company’s experience with DC power devices and its UL certification have enabled it to participate in the US distribution market. It has previously supported infrastructure projects for global corporations such as LG, Samsung, SK, and Hyundai.

Analysts expect demand for such systems to rise further. Global data centre power requirements are forecast to grow by 11 % annually from 2023 to 2028, with AI-related workloads potentially driving increases of up to 36% per year.

The contract provides LS Electric with an opportunity to strengthen its presence in the North American market, particularly in the expanding data centre and decentralised energy sectors.

Source: LS Electric