LS Eco Energy to Invest KRW 8 Billion in Vietnam to Expand AI Data Center Busduct Production

Establishing New Epoxy-Type Production
Mass Production Set to Begin in the Second Half of Next Year

LS Eco Energy is making significant investments in large-scale busduct facilities to gain an early foothold in the Artificial Intelligence Data Center (AIDC) power infrastructure market.

LS Eco Energy Vietnam Manufacturing Corporation (LSCV) exterior view. LS Eco Energy

On October 7, LS Eco Energy announced that it would invest approximately KRW 8 billion in its Vietnam manufacturing subsidiary, LS Eco Energy Vietnam Manufacturing Corporation (LSCV), located in Ho Chi Minh City, to establish new production facilities for "epoxy-insulated type busducts." Busducts are alternative electrical distribution systems to conventional wiring, efficiently and safely supplying large amounts of power in plants, high-rise buildings, and data centers. The newly invested epoxy type is a high value-added product optimized for ultra-large, high-capacity power supply applications that require excellent insulation and durability.

LSCV plans to begin mass production in the second half of next year and, by adding the epoxy type to its existing film-type busduct product line, will double its total busduct manufacturing capacity.

This latest investment by LS Eco Energy aligns with the ongoing expansion of Southeast Asian data centers by global big tech (major technology companies). Microsoft and Google have each announced investments of USD 2.2 billion and USD 2 billion, respectively, in Malaysia, to bolster their AI and cloud infrastructure. Accordingly, demand for power infrastructure necessary for data centers is expected to continue rising.

To address this, LSCV plans to expand its product lineup to meet a variety of AIDC customer specifications and strengthen its order-winning capabilities, particularly in Asia. Since launching its busduct business in 2018, LSCV has broadened its customer base to include global big tech hyperscale data centers in Indonesia and Malaysia. As a result, first-half sales this year rose more than threefold compared to the same period last year.

Meanwhile, LS Cable is leveraging Gaon Cable's U.S. subsidiary, LSCUS, as its base for North American business and is also constructing a manufacturing corporation in Mexico. It continues to expand the production capacities of its Gumi plant in North Gyeongsang Province and LSCV in order to strengthen its AIDC-oriented busduct business across the Americas and Asia.

Sangho Lee, CEO of LS Eco Energy, said, "Through this investment, we will simultaneously enhance our product competitiveness and production capacity, accelerating our efforts to capture a share of the Asian AI power infrastructure market."

This content was produced with the assistance of AI translation services.