Power Play: How LS Electric Aims to Outpace U.S. Rivals in the Data Center Race

Chairman Koo Ja-kyun Sets Sights on US Data Center Boom with Rapid, Tailored Solutions
HANOI, Vietnam — LS Electric Chairman and CEO Koo Ja-kyun is spearheading efforts to bolster the company’s position in the US power systems market, capitalizing on the explosive growth of the AI-driven data center industry.

“Compared to the Big Four power system suppliers in the US — Schneider Electric, Siemens Energy, Eaton Corporation, and ABB — LS Electric delivers to clients more than twice as fast and at more competitive prices,” Koo stated during a group interview at LS Electric’s Bac Ninh plant in Hanoi, Vietnam.

Koo’s visit to Vietnam precedes the upcoming Elects Vietnam 2025 exhibition, scheduled for July 16-18 in Ho Chi Minh City.

The post-pandemic surge in AI-powered digital services has prompted tech giants to accelerate investments in AI data centers. Koo emphasized that LS Electric is targeting this burgeoning market, which demands server racks equipped with high power-density distribution systems — a sector where established US power companies have struggled to meet skyrocketing demand.

Historically, LS Electric’s primary North American clientele consisted of manufacturing plants and utility providers, accounting for roughly 50 percent of the company’s total sales.

To expand its market reach, LS Electric is exploring acquisitions of US-based power distribution panel suppliers. This strategy aims to penetrate what Koo described as a “surprisingly conservative” electrical market, where customer loyalty often spans decades — a stark contrast to the rapidly evolving IT sector.

In the interim, LS Electric has steadily gained ground by servicing and customizing products originally supplied by US competitors, successfully winning over major tech clients. The company conducts rigorous performance testing at its Power Testing & Technology Center within its Cheongju plant in Korea.

“Our ‘fast and precise’ customization approach is garnering attention from US clients, with some even seeking exclusive supply agreements,” Koo noted, highlighting the company’s growing foothold in an industry traditionally dominated by local players.

LS Electric has also become the first Korean company to secure UL certification for its power distribution panels — a crucial requirement in the US market to meet stringent safety and performance standards.

Looking to the future, Koo identified the transition from alternating current (AC) to direct current (DC) power systems as South Korea’s next major growth opportunity. He drew parallels to the country’s previous 32-year transition from 110V to the globally adopted, more efficient 220V standard.

“The market for DC products is experiencing rapid growth,” Koo observed. “Key technologies — including energy storage systems, solar, and wind power — all operate on DC. While DC is typically converted to AC for usage, direct DC use eliminates conversion energy losses. This global shift towards DC systems presents a significant opportunity for South Korea to lead the future of the power industry.”

“Electricity drives AI competitiveness — and AI enhances national competitiveness,” he added.

As part of its North American expansion strategy, LS Electric recently completed construction of its first US manufacturing and R&D facility in Bastrop, Texas. The company plans to commence production of medium- and low-voltage power equipment and distribution systems for local AI data centers this year — a move aimed at increasing market share while mitigating US tariff pressures.