LS Electric DC Power Distribution, $70 M US Big Tech Deal, Infineon Mo U, and a $56 B Market Forecast (2024 to 2026)

Industry Shift to DC Power, LS Electric and Infineon Address AI Energy Demand

The AI-driven power crisis is forcing a rapid industry shift from inefficient AC power to Direct Current (DC) distribution, with strategic partnerships between component suppliers and system integrators becoming the primary mechanism for commercial adoption. This transition is a direct response to the unsustainable energy consumption of AI data centers, which threatens both grid stability and the economic models of digital infrastructure.

• Prior to 2025, data center power architecture was dominated by traditional Alternating Current (AC) systems. While functional, these systems involve multiple energy-wasting conversion stages between the grid and the server, a problem that grew more acute as server power density increased.
• From 2025 to today, the market has pivoted aggressively toward DC solutions to mitigate these losses. The International Energy Agency (IEA) projects global data center electricity demand will surpass 945 TWh by 2030, an exponential growth curve that makes efficiency a critical priority. This created a strong market pull for new solutions.
• LS ELECTRIC demonstrated its ability to capture this demand by securing major contracts, including a $70 million deal with a U.S. Big Tech firm in May 2026 for power infrastructure. This followed an earlier $115 million U.S. data center contract in April 2026, signaling significant commercial traction.
• The July 2026 Memorandum of Understanding (Mo U) between LS ELECTRIC and Infineon validates that system-level DC solutions are now dependent on deep, specialized component expertise. The alliance aims to leverage Infineon’s wide-bandgap semiconductors & AI chips, like Silicon Carbide (Si C), to develop the next-generation hardware required for high-efficiency DC power distribution.

Data Center Power Management Market Set for Double-Digit Growth
The Data Center Power Management market is projected to grow from $8.76 billion in 2026 to $16.04 billion by 2035, representing an 83% increase. This sustained expansion underscores the escalating demand for robust and efficient power solutions as data center infrastructure rapidly scales.

Energy Efficiency Drives Multi-Billion Dollar Opportunity
This market surge is fueled by the imperative for energy efficiency and operational resilience in data centers, making advanced power management, including DC power distribution, critical. Companies that can deliver innovative solutions will capture a significant share of this rapidly expanding sector.

U.S. Data Center Electricity Demand Set to Soar, Exceeding 1,000 TWh by 2030
U.S. data center electricity demand is projected to soar, with high forecasts (e.g., BCG, EPRI High) indicating it could exceed 1,000 TWh by 2030. Even conservative estimates show demand more than doubling from 2024 levels, highlighting an escalating energy consumption challenge.

(Source: U.S. Data Center Power Map by State (2026))

$56.5 B Market by 2034, Infineon and LS Electric Capitalize on Data Center Power Growth

Massive capital investment is flowing into the data center power market to address explosive demand, creating a lucrative opportunity for companies that can deliver efficiency gains through advanced DC architectures. Forecasts show the market more than doubling by the end of the decade, driven almost entirely by the power requirements of AI and high-performance computing.

• Market research forecasts a dramatic expansion, with the global data center power system market projected to grow from $21.52 billion in 2025 to $56.50 billion by 2034, representing a compound annual growth rate of 16.2%. This growth is directly linked to the buildout of new AI facilities.
• Component manufacturers are scaling production to meet this demand. In February 2026, Infineon announced it would invest €500 million to expand its manufacturing capacity specifically to serve the AI data center market, underscoring the supply chain’s response to the surge.
• This investment climate allows system integrators to secure high-value contracts. LS ELECTRIC’s series of wins in 2026, including deals worth $115 million, $70 million, and $64 million with U.S. technology companies, are a direct monetization of this trend.
• The economic pressure is substantial, with the Dallas Fed estimating that data center power demand could contribute 0.05 percentage points to headline PCE inflation in 2026 alone. This provides a strong incentive for hyperscalers to adopt more efficient DC power solutions to control operating expenditures.

Table: Data Center Power Market Growth Projections

AI Data Center Electricity Demand to Skyrocket
Electricity demand for newly added AI data center servers is projected to increase by 575%, from 74 TWh in 2022 to 500 TWh by 2027. This explosive growth, highlighted by Infineon, signifies an acute power challenge for the industry.

Urgent Need for Next-Gen Power Infrastructure
This massive power surge will severely strain existing energy grids and data center cooling capacities. It necessitates immediate and substantial investment in ultra-efficient power architectures and distribution, such as advanced DC power solutions, to sustain AI innovation.

Global Data Center Electricity Demand Projected to Surge by 2026
Global electricity demand from data centers, AI, and cryptocurrencies is projected to surge dramatically, from approximately 300 TWh in 2019 to over 1000 TWh by 2026 in the high-case scenario. Even the base-case forecasts demand to exceed 800 TWh, placing immense strain on existing energy grids.

(Source: AI Data Center Power: Grid Limits Reshape Energy in 2026)

LS Electric’s Key Alliances, Infineon Mo U and Honeywell Partnership (2025 to 2026)

LS ELECTRIC has systematically built a network of strategic alliances that integrate component-level innovation with system-level deployment capabilities, positioning it to deliver end-to-end DC power solutions. These partnerships connect its power systems expertise with leaders in semiconductors, automation, and telecommunications, creating a formidable ecosystem to address the complex needs of AI data centers.

• The most significant move is the July 2026 Mo U with Infineon Technologies. This collaboration focuses on the joint development of critical next-generation technologies for DC power distribution, including solid-state transformers (SSTs) and solid-state circuit breakers (SSCBs) based on Infineon’s power semiconductors.
• In October 2025, LS ELECTRIC established a global partnership with Honeywell. This alliance was formed to accelerate innovation for data centers and Battery Energy Storage Systems (BESS), combining LS ELECTRIC’s power equipment with Honeywell’s building management and control software.
• To directly target the AI infrastructure market, LS ELECTRIC partnered with South Korean telecom giant LG Uplus in July 2026. The goal of this partnership is to jointly build DC power infrastructure specifically for LG Uplus’s new AI data center, creating a key domestic use case and reference architecture.

Table: LS Electric Strategic Partnerships (2025-2026)

US and South Korea, LS Electric and Infineon Target Key Data Center Hubs

The market for advanced DC power infrastructure is concentrated in major data center hubs, with the United States emerging as the primary commercial battleground where South Korean system expertise and German semiconductor technology are converging. This geographic focus aligns directly with where the majority of global data center construction and AI-driven power demand are located.

• The United States is the clear focal point of commercial activity. LS ELECTRIC secured at least three major contracts with U.S. “Big Tech” companies in 2026 alone, with a combined value exceeding $249 million. This demonstrates deep market penetration and acceptance by the world’s largest data center operators.
• Projections show the U.S. will face the most intense power strain, with data centers expected to consume up to 9% of the nation’s total electricity generation by 2030, according to EPRI. This makes it the most attractive market for efficiency-improving technologies like DC distribution.
• South Korea serves as a critical domestic market and innovation hub. LS ELECTRIC’s partnership with LG Uplus to build a DC-powered AI data center provides a strategic proving ground for its technology before scaling it globally.
• The partnership with Germany’s Infineon highlights the international supply chain required to address this global challenge. It connects European semiconductor leadership with Asian power system manufacturing and North American end-market demand, a structure mirrored by other tech giants like Applied Materials.

DC Power Technology, LS Electric and Infineon Target Commercial-Scale Si C Solutions

While the concept of DC power is mature, its application in data centers using next-generation components like solid-state transformers and silicon carbide (Si C) devices is now transitioning from pilot stages to commercial readiness. This shift is driven by the extreme power density and efficiency requirements of modern AI clusters, which conventional AC systems cannot sustainably support.

• In the period before 2025, DC power in data centers was largely a niche application, often confined to telecom-style racks or limited deployments. The technology for facility-scale DC distribution was considered immature and cost-prohibitive.
• From 2025 onward, the industry focus has shifted to high-voltage DC (like 800 VDC) at the facility level. The LS ELECTRIC and Infineon Mo U is a clear signal of this transition, as it explicitly targets the core enabling components: solid-state transformers (SSTs) and solid-state circuit breakers (SSCBs).
• The collaboration’s emphasis on wide-bandgap semiconductors & AI chips, particularly Si C, is the key technological validation point. Si C allows for higher efficiency, smaller physical footprints (up to 30% reduction), and better thermal performance compared to traditional silicon, making it essential for high-power DC systems.
• This technology roadmap aligns with market expectations. Industry analysis from May 2026 suggests that 800 VDC architectures will become viable at the facility level starting around 2029. The LS ELECTRIC-Infineon alliance is positioned to have commercial-grade products ready for this adoption wave.

2027 Outlook, Watch LS Electric and Infineon for Commercial DC Product Launches

The primary indicator to watch in the next 12 to 18 months is the speed at which the LS ELECTRIC-Infineon alliance translates its Memorandum of Understanding into commercially available, integrated DC power products for data centers. The success of this partnership hinges on its ability to move from joint development to market deployment and capture a first-mover advantage.

• If this happens: The partnership announces a joint product by mid-2027, such as a Si C-based solid-state transformer or a complete prefabricated DC power skid for data centers. This would signal that their collaboration has successfully cleared key R&D and integration hurdles.
• Watch this: The announcement of a pilot deployment with a named hyperscale or colocation provider. A public endorsement from a major data center operator would serve as the ultimate validation for their integrated DC solution and likely trigger broader market adoption.
• These could be happening: Competitors like Schneider Electric and ABB will likely accelerate their own DC product roadmaps and may seek to form similar partnerships to counter the vertical integration of LS ELECTRIC and Infineon. Monitor M&A activity in the power electronics and semiconductor space as a leading indicator of competitive response.

The questions your competitors are already asking

This report covers one angle of LS Electric’s commercial trajectory in the data center power market. The questions that matter most depend on your work.

• Schneider Electric data center DC power solutions
• Which tech companies are using 800V DC power
• Silicon carbide suppliers for data center equipment
• Solid state transformer manufacturers for data centers

This report does not answer these. Enki Brief Pro does.

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