Korean power companies step up U.S. AI data center push

By Maekyung News Service

South Korean battery and power equipment companies are entering the U.S. artificial intelligence (AI) data center ecosystem, competing to gain an early foothold in the market.

LS Cable & System Ltd. and LS Materials Co. unveiled new products for AI data centers Tuesday at Data Centre World Asia 2026 in Singapore, including equipment that distributes power within server racks. The companies are expanding their offerings from data center power grids to equipment closer to servers.

Gaon Cable Co., which has been working with LS Cable & System to supply large amounts of power to areas around server racks at AI data centers in North America, is also expanding its U.S. operations.

Its U.S. production unit, LSCUS, will invest in facilities to manufacture overhead transmission lines, expanding its business from power distribution into transmission, the company said Tuesday.

LSCUS is expanding its medium- and low-voltage cable production lines, with the first phase scheduled for completion next month and the second phase in the first half of next year.

The investment comes as demand for transmission infrastructure grows with the expansion of data centers and advanced manufacturing facilities and the connection of new power-generation sources. According to the Edison Electric Institute, U.S. utilities plan to invest $178 billion in transmission grids from 2025 through 2028.

Gaon Cable also plans to expand from power networks within power plants into transmission grids and explore synergies with LS GreenLink USA Inc., LS’s U.S. subsidiary, which operates an ultra-high-voltage submarine and underground cable business. It is also considering entering the U.S. nuclear power cable market as investment in nuclear power expands.

Hyosung Heavy Industries Co. is developing key AI data center components, including solid-state transformers, while building production facilities for high-voltage direct-current (HVDC) transformers.

HVDC can reduce power losses and transmit larger amounts of electricity than conventional alternating-current systems, making it a key technology for long-distance transmission.

Meanwhile, battery maker LG Energy Solution Ltd. has joined Nvidia Corp.’s AI factory ecosystem after being selected last week as a partner for Nvidia’s DSX-ready battery energy storage systems (BESS), becoming the only Korean battery maker in the ecosystem.

Nvidia approved LG Energy Solution’s large-capacity lithium iron phosphate, or LFP, battery system, which is designed for high energy efficiency and long service life. The system charges and discharges in response to changes in AI server power consumption to reduce load fluctuations and maintains a stable power supply when grid voltage rises or falls sharply.

LG Energy Solution has also won large-scale battery supply deals with major U.S. technology companies, including Google LLC and Oracle Corp.

Data center construction is expanding rapidly across the United States as AI drives demand for electricity. Electricity consumption by Google increased 37 percent last year, while Microsoft’s rose 24 percent, according to BloombergNEF.

U.S. data center power consumption is projected to nearly double to 391 terawatt-hours (TWh) in 2030 from 221 TWh this year.

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