Korean power infrastructure firms expand globally as demand rises from AI data centers, grid renewals

Korean power infrastructure companies are rapidly expanding their global footprint as booming demand from AI data centers and aging power grids fuels a worldwide surge in investment in electricity infrastructure.

LS Group announced Monday that its affiliates Gaon Cable and LS Electric had signed contracts to supply power infrastructure equipment for AI data centers operated by U.S. Big Tech companies.

Lscus, Gaon Cable’s U.S. subsidiary, plans to begin supplying bus ducts worth about 50 billion won ($33.4 million) this year and would deliver products worth up to 4 trillion won over the next five years. Often referred to as “power highways,” bus ducts are systems used in place of conventional wiring to minimize energy loss when transmitting large volumes of electricity.

LS Electric will supply vacuum circuit breakers (VCBs) worth $70 million. VCBs are devices that rapidly shut off power in electrical circuits when abnormal currents, such as overloads or short circuits, occur, protecting electrical facilities from damage.

HD Hyundai Marine Solution, the maritime industry solutions affiliate of HD Hyundai, signed a deal last month to supply 33 20-megawatt HiMSEN engines to a data center being built in Texas by U.S. energy infrastructure company AEG. The company will also be responsible for maintaining the engines. Originally developed as marine engines, HiMSEN units have increasingly been repurposed for power generation as electricity demand from AI data centers surges.

Cable manufacturers are also posting strong earnings alongside the broader power infrastructure boom.

LS Cable’s combined revenue and operating profit from its industrial cable, power cable, intermediate materials and communications businesses rose 5.1 percent and 16.9 percent, respectively, in the first quarter from the same period a year earlier, the cable company said.

Gaon Cable also posted record first-quarter results, with revenue and operating profit rising 19.4 percent and 27.2 percent, respectively. Taihan Cable & Solution reported a 26.6 percent increase in revenue and a 122.9 percent jump in operating profit.

Korea’s power infrastructure industry has benefited from soaring demand for electrical equipment as global technology companies race to build hyperscale data centers following the spread of generative AI. The industry has also gained momentum as advanced economies, including the United States and Europe, accelerate projects to replace and reinforce aging power grids.

Major overseas competitors include GE Vernova from the United States, Germany’s Siemens Energy and Sumitomo in Japan, while Chinese firms are increasingly entering the market with aggressive pricing strategies.

Despite intensifying competition, Korean companies are attracting attention for their technological capabilities and price competitiveness. Market research firm Research Nester projected that the global power grid market will grow from $10.98 billion last year to $24.37 billion by 2035.

The core of power infrastructure technology lies in minimizing transmission losses while maintaining safety during high-capacity electricity transmission. Korean firms, in particular, are considered competitive in product quality and in meeting delivery schedules.

Companies are also increasingly focusing on high-value-added products such as high-voltage direct current cables and submarine cables to secure technological leadership and improve profitability.

Experts say expanding production capacity will be the industry’s top priority going forward.

“In the underground cable market, delivery timelines have already become more important than price, while supply shortages continue in submarine cables,” said Son Hyun-jung, an analyst at Yuanta Securities. “Over the mid to long term, expanding production capacity will be key to achieving structural growth in the power infrastructure industry.”

BY KO SUK-HYUN [[email protected]]