LS Electric has partnered with South Korean technology firm Naver Cloud to integrate artificial intelligence into its power systems and data center operations.

The two companies inked a Memorandum of Understanding (MoU) on July 25, which aims to enhance both companies' expertise and expand business operations in power, smart factory, and data center technologies through the use of AI and cloud capabilities.

The MoU sets the parameters for collaboration across several initiatives. These include the joint development and demonstration of AI solutions tailored for power and data centers, collaboration in cloud-based MES (Manufacturing Execution Systems) and FEMS (Factory Energy Management Systems) for manufacturing, and the advancement of smart factory solutions via cloud transformation.

Commenting on the partnership, CEO of LS Electric, Chae Dae-seok, stated: “The fusion of LS Electric’s power and automation capabilities with Naver Cloud’s advanced AI technology will drive innovation towards 'AI-powered power systems,' 'AI smart factories,' and 'AI data centers.'”

The partnership will include the deployment of an “AI Agent,” which will combine LS power equipment diagnostic solutions with Naver Cloud’s AI models. According to the companies, the Agent is designed to enable “non-experts to operate power equipment effortlessly, thereby improving customer convenience.”

In addition, the companies plan to strengthen the competitiveness of their MES and FEMS systems through the integration of AI and cloud technologies.

“This partnership represents a practical implementation of generative AI and cloud in manufacturing. We will strive to expand our AI and cloud-based SaaS solutions across various industries,” said Kim Yu-won, CEO of Naver Cloud.

Naver Cloud is a subsidiary of the larger South Korean conglomerate Naver Corporation. It has already signed several notable deals in 2025, including a leasing agreement last month to occupy space at the LG CNS-operated Jukjeon Data Center in Seoul, South Korea. The contract is expected to last eight years.

Outside of the Korean market, the company has developed a global presence. The company currently has cloud regions in Japan, Germany, Singapore, and the US (West Coast), and future regions are planned in the US (East Coast), Vietnam, Taiwan, and Thailand. It previously exited Hong Kong.

Also in 2025, it signed a partnership with Nvidia, Nexus Core Systems, and investment firm Lloyds Capital to build a 500MW AI data center in Morocco, with construction set to begin later this year.

LS is the biggest player within South Korea’s commercial data center power infrastructure market, holding a 60 percent share. Late last year, the company signed an MoU with the Korea Hydro and Nuclear Power Corporation to explore the development of AI data centers powered by SMR technology.