LS Electric Co. has entered a partnership with Honeywell International Inc. to develop battery storage and power management systems targeting data centers, as facilities face mounting pressure to handle escalating energy requirements driven by artificial intelligence workloads.
The South Korean electrical equipment maker announced the collaboration Oct. 10, following an agreement signed two days earlier at an industry conference in Singapore. The companies plan to integrate LS Electric’s energy storage technology with Honeywell’s building automation software to create systems that monitor and distribute power more efficiently.
Data centers consumed roughly 4.4% of U.S. electricity in 2023, according to Lawrence Berkeley National Laboratory, with projections suggesting that figure could nearly triple by 2028 as AI applications proliferate. The facilities’ share of global electricity consumption remains below 3% but is climbing at more than four times the rate of other sectors.
The partnership positions LS Electric to expand into North American markets, where hyperscale operators are scrambling to secure adequate power supplies. Honeywell will package the joint products alongside its existing building controls, creating what the companies describe as integrated switchgear and monitoring equipment.
Financial terms weren’t disclosed, and neither company provided timelines for when commercial products might reach the market. The collaboration centers on using artificial intelligence to predict maintenance needs and optimize energy sourcing based on utility rates and weather patterns.