LS Corp. signed a joint venture agreement with Bhutan’s government development agency GIDC to supply power infrastructure for a new city in the Gelephu region, positioning itself in what could become a hub for data centers seeking low-cost electricity.
The Korean industrial conglomerate will establish a local office and provide transformers, energy storage systems, and power cables for the initial development of the 2,500-square-kilometer project along Bhutan’s border with India, according to a May 9 statement.
GIDC plans to develop Gelephu as an eco-friendly smart city powered by renewable energy, particularly hydroelectric sources. The agency aims to complete an international airport by 2029 as part of the development.
The partnership represents LS Corp’s latest effort to expand into emerging markets following recent discussions with Ukrainian officials about power ecosystem restoration and tractor business cooperation.
Vice Chairman Myeong No-hyeon cited the arrangement as an important foundation for building future cooperation with Bhutan, according to the company statement.
Several global technology companies are considering building data centers in the region, attracted by Bhutan’s renewable energy capabilities and low electricity costs. The deal potentially positions LS as a key supplier for these facilities, although the company hasn’t disclosed financial terms of the joint venture.
