LS Electric and GS Engineering & Construction (GS E&C) have entered into a memorandum of understanding to jointly develop direct-current (DC) power distribution technology for AI data centres.

The agreement, signed at LS Yongsan Tower in Seoul, aims to address the rising energy and infrastructure requirements driven by increased adoption of AI and high-performance computing in data centre environments.

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LS Electric chairman Koo Ja-kyun, CEO Chae Dae-suk, and GS E&C CEO Huh Yoon-hong attended the signing ceremony.

Discussions at the event centred on the outlook for the global AI data centre market and the technological and operational shifts required to support growing demand.

Under the terms of the agreement, the companies will collaborate on the development of next-generation DC distribution technology intended to enhance power efficiency within data centres hosting energy-intensive AI workloads.

They have committed to holding regular technical exchange sessions and will coordinate their responses to evolving requirements in the AI data centre sector.

The partnership will see GS E&C receive supplies of core power equipment from LS Electric, including gas-insulated switchgear, switchboards and transformers for its current and upcoming AI data centre projects.

Additionally, the companies intend to jointly explore solutions for modular data centres and DC-based power distribution, while also addressing the technical needs of major customers, including large technology companies.

LS Electric has developed technologies such as solid-state transformers (SST), solid-state circuit breakers (SSCB), and energy storage systems (ESS) to support a DC ecosystem.

An LS Electric official told Seoul Economic Daily: “The AI data centre paradigm is rapidly shifting toward DC distribution, which minimises power losses. Based on top-tier power solutions already proven in the US big-tech market and next-generation distribution technologies such as SST and SSCB, we will significantly strengthen our cooperation with GS E&C to lead the global power infrastructure market.”