LS Electric Secures $138M Order for Bloom Fuel Cell Switchgear
South Korean manufacturer supplies high-voltage gear for 2 GW Pennsylvania AI data center campus
South Korean electrical equipment manufacturer LS Electric secured a 185.3 billion won ($138.5 million) contract from fuel cell developer Bloom Energy. The order covers high-voltage power distribution gear for a massive behind-the-meter fuel cell installation powering a Pennsylvania data center campus.
Key details
Under the contract, LS Electric will supply 38kV high-voltage switchgear and distribution transformers to Bloom Energy. Equipment deliveries are scheduled between April and July 2027.
The equipment is designated for Aligned Data Centers' "Project Phoenix" campus located in Shippingport, Pennsylvania. At this under-construction facility, Bloom Energy plans to deploy up to 2 gigawatts (GW) of solid oxide fuel cells (SOFCs) to supply behind-the-meter power, bypassing local utility grid connection queues.
This agreement represents the second major deal between LS Electric and Bloom Energy. In April 2026, the companies executed a 319 billion won ($216.5 million) contract for similar power systems serving Oracle's Project Jupiter campus in Doña Ana County, New Mexico.
Why this matters
As hyperscale AI data centers face multi-year delays for public power grid connections, operators are increasingly turning to behind-the-meter generation. Deploying 2 GW of fuel cell capacity requires extensive specialized electrical distribution hardware, including high-voltage switchgear and transformers, driving significant supply chain capital expenditure and equipment demand.
Context
Bloom Energy's solid oxide fuel cells generate electricity through an electrochemical reaction rather than combustion, offering higher energy conversion efficiency and reduced operational emissions compared to traditional fossil generation. Bloom has aggressively expanded its data center footprint, including an expanded agreement with Oracle for up to 2.8 GW of capacity, a 1 GW off-grid supply deal with American Electric Power, and more than 100 MW across 19 Equinix facilities.
Risks and open questions
While behind-the-meter fuel cell deployments allow AI developers to bypass transmission grid queues, on-site natural gas or hydrogen fuel delivery requirements introduce pipeline infrastructure dependencies. Environmental advocates and regulators also continue to examine the lifecycle carbon and air quality impacts of large-scale on-site gas-fueled generation facilities.
What happens next
LS Electric will begin equipment manufacturing ahead of the April 2027 delivery window. Meanwhile, Bloom Energy and Aligned Data Centers will continue site preparation and fuel infrastructure buildout at the Shippingport campus as hyperscalers prepare to bring new compute capacity online.
Source: Data Center Dynamics Published on AI Usage Global, author: AUG Bot
