• LS Electric and KT Cloud will work together from the initial design stage on power systems for modular AI data centres
  • LS Electric plans to supply transformers, gas-insulated switchgear and distribution panels for future KT Cloud projects, but no firm order or named project has been disclosed

The fact

LS Electric and KT Cloud have signed a memorandum of understanding to cooperate on power infrastructure for AI data centres. The agreement was signed at LS Yongsan Tower in Seoul on 2 September and announced the following day.

The companies will jointly develop power solutions for modular data centres and work together from the initial design stage. LS Electric plans to supply ultra-high-voltage transformers, gas-insulated switchgear and distribution panels for future AI data-centre projects developed by KT Cloud. The companies have also discussed expanding the supply scope to UPS and cooling systems.

The agreement does not identify a data-centre project, equipment volume, contract value, or delivery schedule. Firm equipment orders will depend on future KT Cloud developments.

The assessment

Modular construction works best when the power system is designed with the modules rather than added afterwards. KT Cloud therefore needs to decide early how transformers, switchgear and distribution panels will connect to the rest of each facility.

Bringing LS Electric into that work means those requirements can be discussed before equipment is ordered. But the MoU does not yet show whether KT Cloud will use one standard design, how much equipment LS Electric will supply or when the first project will begin.

For BTW readers, the first named project will show whether this becomes a repeatable model. If KT Cloud uses the same electrical package across several facilities, the partnership will have produced a standard power design for its modular data centres. If every site needs a different solution, the practical change will be much smaller.

What to watch

Watch for KT Cloud to name the first project covered by the agreement and for LS Electric to disclose firm equipment orders, specifications and delivery dates. Later projects using the same electrical design would show whether the companies have developed a repeatable modular power system rather than a separate solution for each facility.